The Russian steel producer Evraz Group (Evraz) and Russian pipe producer TMK Group (TMK) have agreed to divide up the assets of North Amerian steel producer IPSCO following its acquisition by Evraz from Swedish specialty steelmaker Svenskt Stal AB (SSAB).
Evraz announced on March 14 that it has entered into a purchase agreement with SSAB to acquire IPSCO's Canadian plate and pipe business and also IPSCO's tubulars business for a net cost of $2.3 billion and $4.025 billion respectively.
IPSCO Canada's assets include plants in Regina, Calgary and Red Deer, making the company the leading North American producer of steel plate and pipe for the oil and gas industry.
Following its acquisition, Evraz has concluded a definitive agreement with Russian pipe producer TMK Group to sell the US-based companies and assets of IPSCO Tubulars. According to the agreement, TMK will acquire a 100 percent stake in IPSCO Tubular Inc. and 51 percent in NS Group for approximately $1.2 billion. In addition, Evraz expects to sell the remaining 49 percent stake in NS Group to TMK in 2009.
Both Evraz and TMK said that the acquisition of IPSCO's assets will allow the companies to enhance their positions in North America's steel market.