Swedish specialty steelmaker SSAB Svenskt Stal AB will sell the pipe division of IPSCO Inc. upon the successful closing of its takeover bid for the company, according to Swedish business daily.
The report said that SSAB hoped to sell the unit before year-end, thus allowing the company to focus all its energy on production of sheet and plate.
Both SSAB or IPSCO have declined to comment on the report, published last week by Dagens Industries.
IPSCO and SSAB announced in May that SSAB had agreed to buy IPSCO for $7.7 billion, and that the deal was expected to close in the third quarter.
IPSCO produces steel tubes and plates, with an annual capacity of 4.3 million tons from four steel mills and 11 pipe mills. Its pipe/tubing division accounts for almost half of the company's sales.