The fifth-largest US-based carbon steelmaker, Steel Dynamics Inc. (SDI), told the press this week that it is currently considering whether to bid for energy pipe maker Ipsco Inc.
"We are evaluating our options. We are not sure at this point whether we are going to get involved in the transaction," SDI CEO Ken Busse told the press during a conference call on Tuesday.
Mr. Busse said that the company is cutting its dependence on flat rolled steel to boost investment in steel used for industrial and construction clients, which is currently more profitable. "We are looking at other opportunities with established companies that might be of value to our shareholders," Mr. Busse continued.
An SDI spokesperson later declined to comment further or to say whether or not the company was in talks with Ipsco.
After a Russian newspaper reported that Lisle, Illinois-based Ipsco Inc. was in talks to be acquired by Evraz Group SA, Ipsco said on April 12 that it is in talks that may lead to a takeover of the company, though it did not specify which suitors it was in discussions with.
In other SDI news, the company reported this week that its first quarter net income rose to $102.2 million from $76 million a year earlier. Results were better than expected due to higher steel prices and increased demand for specialty steel used in construction.