Russia's Evraz to acquire Oregon Steel Mills for $2.3 billion
Russia's Evraz Group, a leading vertically integrated steel production
and mining company, on Monday said it will acquire US-based Oregon Steel Mills
for $63.25/share, or an aggregate price of about $2.3 billion.
The offer price of $63.25/share represents a premium of 22.3% to Oregon
Steel's three-month volume weighted average stock price or a premium of
30.3% to its six-month volume weighted average stock price.
The combined company will produce over 16.8 million mt of crude steel and
will have over 17.4 million mt of steel shipments in 2006.
Both companies have signed a definitive agreement and under the terms of
the agreement, a newly formed Evraz subsidiary will make a cash tender offer
for all shares of Oregon Steel common stock and then merge with Oregon Steel.
The offer, which is expected to commence during the week of November 27,
2006, will be subject to customary conditions, including anti-trust and other
regulatory clearances and the acquisition by Evraz of a majority of Oregon
Steel's shares. The offer will be followed by a merger at the same price. Upon
completion of the transaction, Oregon Steel will become a subsidiary of Evraz.
"We are pleased to announce another transaction in line with our
long-term strategy to develop higher value downstream markets complementary to
Evraz slab production. This transaction will provide compelling benefits to
both Evraz and Oregon Steel,"
"The acquisition of Oregon Steel represents a solid platform for Evraz as
a footprint in North America, one of the most important markets globally. This
will secure an important place on the attractive plate market and in the
expanding pipe business in North America. The combined company will also be
the leading rail producer globally," said Evraz's Chairman Alexander Frolov in
a statement. "Oregon Steel will benefit from having a reliable source of
slabs, a necessity in the steel business. We are excited to bring together
these two companies, which combined will enjoy exposure to some of the fastest
growing, most profitable steel segments...."
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Started by
dasein
, Nov 20 2006 10:31 AM
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