OneSteel to acquire Smorgon Steel

OneSteel Ltd, Australia's second-largest steel company, announced today that it had reached an agreement with another Australian steelmaker Smorgon Steel to acquire the company's all shares. The transaction, which is subject to approval of Australian Competition and Consumer Commission (ACCC), is worth about A$1.58 billion ($1.15 billion). The two companies said the agreed deal would see Smorgon shareholders receive a combination of OneSteel shares and cash, valuing Smorgon at A$1.76 a share, a 31 percent premium to its last traded price of A$1.34. The transaction is expected to be completed by October 2006.