TMK, Russia’s largest steel pipe manufacturer, has completed a $1.25-billion deal to buy IPSCO Tubular’s US assets from Swedish steel producer SSAB. Under the transaction, carried out jointly with Evraz Group, TMK acquired 100% of shares in IPSCO Tubulars Inc. and 51% of shares in NS Group. TMK and Evraz also entered into a call/put option for the remaining 49% of NS Group, which may be exercised for around $0.5 billion subject to 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 10 production facilities in seven states with combined pipe production capacity of over 1m tons/yr, including about 300,000 tons of seamless pipes and an in-house steelmaking capacity of 450,000 tons/yr, the statement said. In addition to pipe rolling and steelmaking, the acquired assets include 450,000 tons/yr of heat-treatment capacity.
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