Evraz, Russia's leading steel and mining company, announced November 20 a deal to purchase Oregon Steel Mills, one of the most diversified steel manufacturers in North America, for $2.3 billion. The deal stipulated a cash offer by Evraz for all of Oregon Steel's common stock at $63.25 per share.
"The acquisition of Oregon Steel represents a solid platform for Evraz as a footprint in North America, one of the most important markets globally," Evraz Chairman Alexander Frolov earlier said.
The board of directors of Oregon Steel unanimously recommended that its shareholders accept the offer.
Jim Declusin, Oregon Steel Mills president and chief executive officer, said: "We believe that this offer represents an attractive opportunity for Oregon Steel's shareholders to realize the value of their investment in the company. We are pleased to join with Evraz and become part of a leading global steelmaker with complementary strengths and markets."
Evraz said it will buy the shares through its subsidiary, Oscar Acquisition Merger Sub Inc. After the deal goes through, Oregon Steel will become a subsidiary of Evraz.
In August, Evraz Group, which produced nearly 14 million metric tons of steel in 2005 and posted revenue of $6.5 billion, sold 41% of its stock to U.K.-based Millhouse Capital, which manages Russian billionaire Roman Abramovich's assets. The company did not disclose the price, but experts valued the deal at $2.7-3 billion.
