NLMK, one of Russia's largest steel producers, said on Thursday it will acquire the U.S. hot-rolled steel producer Beta Steel from a group of private shareholders for an all-cash payment of $400 million.
The deal is expected to be closed in the fourth quarter of this year.
The acquisition will facilitate additional upstream integration with the assets of John Maneely Company (JMC), one of the largest U.S.-based pipe and tube producers, which the Russian company agreed to buy in August.
Beta Steel's 2007 sales totaled 602,000 short tons (547,000 metric tons) with revenue at $324 million.
The acquisition of Beta Steel will help develop Novolipetsk's North American presence and increase the sustainability of operations of JMC's pipe and tube division, NLMK CEO Alexei Lapshin
was quoted as saying.
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