Swedish specialty steel producer SSAB and Finland-based steelmaker Rautaruukki have announced that they have come to an agreement to combine the two companies through SSAB making a recommended public share exchange offer amounting to SEK 10.1 billion ($1.55 billion).
According to joint statement, the proposed combination is a natural step to strengthen competitiveness in the European part of their steel operations by improving the cost position and increasing production flexibility in order to better adapt to changes in market demand.
The combined company will be a Nordic and US-based steel company with a global reach and cost-efficient and flexible production. The combined company will continue to serve customers with a broad offering within high strength steels, standard strip and plate products as well as tubular products.
Rautaruukki has decided to recommend its shareholders to accept the share exchange offer. The initial acceptance period will commence in late March or early April 2014 and is expected to close in late April or early May 2014.