Marubeni Itochu acquires largest US OCTG distributor

Japan-based Marubeni-Itochu Steel Inc. (MISI) has announced that it has reached an agreement with Oil States International Inc. (OIS) according to which Marubeni-Itochu Tubulars America Inc., a subsidiary of MISI, will acquire a 100 percent shareholding in the largest US oil country tubular goods (OCTG) distributor Sooner Inc., a subsidiary of OIS, for approximately $600 million.
 
Sooner Inc., headquartered in Houston, Texas, provides a wide range of services for OCTG supply to various customers in the oil and gas industry, including multinational majors and independent producers, through six sales offices and five main logistic supply bases in the US.
 
Through the acquisition of Sooner Inc., which has the largest customer base, strong mill sources and a service network in the US, MISI will expand its OCTG business in the US, responding to the growing demand largely due to shale oil and gas development, and will further enhance its capability as a total tubular management service provider through its global network.
 
The US is the world's largest OCTG market, with 5.5 million mt of OCTG demand, accounting for approximately 40 percent of global consumption which stands at 14 million mt.