The deal between Tenaris and Benteler is expected to be closed during the fourth quarter of the current year.
Luxembourg-headquartered Tenaris S.A. is going to take over 100 percent of the shares of the US-based steel pipe producer Benteler Steel/Tube, for about USD 460 million.
Benteler Steel/Tube, part of the group company – Benteler North America, has been acquired on a cash-free and debt-free basis. This includes about USD 52 million in working capital. The said take-over emphasises Tenaris’ efforts to escalate its manufacturing capabilities. The company expects that the deal will expand Tenaris’ production capacity and presence in the local manufacturing market of North America.
With a pipe rolling capacity of about 400,000 MTPA, Benteler Steel/Tube also has a production facility in Shreveport, Louisiana, USA.
The transaction is dependent upon regulatory board approvals, including the US antitrust authorities, Louisiana Economic Development, and other local entities, along with several other customary conditions. The acquisition is expected to be concluded during the fourth quarter of the current year.
Tenaris, the global manufacturer and supplier of steel pipes and related services for the energy industry, has reported enormous growth in profits during its first quarter, with its net sales growing 100 percent year-on-year and its net income increasing by 400 percent.