Turkey’s largest steel pipe producer Borusan Mannesmann’s US subsidiary, Borusan Mannesmann Pipe US Inc. has initiated negotiations with German steel pipe producer Europipe GmbH for acquisition of Europipe’s US subsidiary, Berg Europipe Holding Corp. Reportedly, a non-binding letter of intent was signed between the parties on March 2 and the necessary negotiations for a binding agreement between the parties are ongoing.
Borusan Mannesmann’s fully owned US subsidiary, Borusan Mannesmann Pipe US Inc., has reportedly begun negotiations with German steel pipe producer Europipe GmbH for acquisition of all issued and outstanding shares of capital stock in the US subsidiary of Europipe, Berg Europipe Holding Corp. According to a regulatory filing, a non-binding letter of intent was signed between the parties on March 2 and the necessary negotiations for a binding agreement between the parties are ongoing. “In the meantime, the necessary financial and legal studies within the scope of the process and the required procedures before the regulatory authorities are being carried out,” Borusan said.
Borusan Mannesmann has an ERW pipe mill in Baytown, Texas, has a 300,000 mt/year capacity. The company began investments last year to raise its US mill capacity to 400,000 mt/year with new lines. The company’s Turkish mill capacities are 750,000 mt/year of ERW pipes and 300,000 mt/year of spiral pipes. The company’s capacity to produce cold-drawn special pipe at its Vobarno plant in Italy is 28,000 mt/year. According to sources, fluctuations in raw material prices have been putting pressure on steel pipe producers’ pricing.
