Tenaris SA said it would acquire U.S. seamless steel pipe producer Benteler Steel & Tube Manufacturing Corp for $460 million as the Luxembourg-based company seeks to expand its manufacturing capabilities in the country.
Tenaris, a global manufacturer of steel pipes, will acquire 100% of Benteler Steel on a cash-free, debt-free basis, which includes $52 million of working capital, it said in a statement.
Benteler Steel & Tube Manufacturing Corp has an annual pipe rolling capacity of up to 400,000 metric tons at its production facility in Shreveport, Louisiana, Tenaris said.
The deal is subject to regulatory approval from the U.S. antitrust authorities and other local entities, Tenaris said. The merger is expected to close during the fourth quarter of 2022.
Earlier in June, without admitting or denying wrongdoing, Tenaris said it would pay $78.1 million to resolve U.S. probes into its alleged payment of bribes to win business from Brazil’s state-owned oil company Petrobras.
Tenaris reported a jump in its first-quarter core profit, boosted by higher prices for oil country tubular goods (OCTG) in the Americas and higher line pipe shipments in Europe and South America.
Source: Reuters.com