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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...." from Platts energy daily email