Russian pipe firm TMK buys IPSCO’s US assets for $1.25 bln
TMK, Russia’s largest steel pipe manufacturer, said on Monday it had completed a $1.25 billion deal to buy IPSCO Tubular’s US assets from Swedish steel producer SSAB.
Under a transaction carried out jointly with Evraz Group SA, Russia’s largest steel and mining company, TMK acquired 100% of shares in IPSCO Tubulars Inc. and 51% of shares in NS Group Inc. TMK and Evraz also entered into a call/put option for the remaining 49% of NS Group Inc., which may be exercised for around $0.5 billion subject to certain adjustments, TMK said. “The purchase of IPSCO Tubular’s US assets is an essential part of TMK’s strategy to expand the company’s global presence and increase supplies of high-tech, premium-class, tubular goods for the oil and gas industry,” TMK said in a statement.
TMK acquired ten production facilities in seven states with combined pipe production capacity of over one million metric tons, including about 300,000 tons of seamless pipes and in-house steelmaking capacity of 450,000 tons of billets per year, the statement said. In addition to pipe rolling and steelmaking, the acquired assets offer 450,000 metric tons of annual heat treatment capacity, about 750,000 metric tons of threading output potential, and up to 240,000 joints of premium connection capacity, the statement said. (rian.ru)
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