Merger-mania in the oil country tubular goods (OCTG) sector came to a head in early May when Stockholm, Sweden-based SSAB Svenskt Stal AB announced its plan to buy Lisle, Illinois-based Ipsco Inc. for $160 per share in a deal valued at approximately $7.7 billion. SSAB has a leading European position in quenched and tempered heavy plate and EHS/UHS sheet steel. Before SSAB placed the winning bid for Ipsco, it was rumored that the buyer could be Russia's largest steelmaker, Evraz Group SA, giving Russia an entrée into the U.S. market. "The acquisition of Ipsco represents a further step in SSAB's 2010 strategy toward global leadership in value-added steel," says Olof Faxander, president and chief executive of SSAB. "Through this transaction, SSAB will accelerate its growth and acquire a platform for future expansion and market presence in North America." This announcement came after months of merger rumors about Ipsco, which has been left as one of the few remaining large North American OCTG-makers. At the end of March, Pittsburgh-based United States Steel Corp. announced its plan to acquire one of the other large OCTG players, Dallas-based Lone Star Technologies Inc. The deal is for $67.50 per share, or approximately $2.1 billion in cash, and may close in this or the next quarter. For more on this, see the June issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

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