IPSCO to be acquired by SSAB
IPSCO Inc. and SSAB Svenskt Stal AB announced that they have entered into an agreement providing for IPSCO to be acquired by SSAB for US$160 per share in cash for a total equity value of US$7.7 billion. The transaction has been approved by the boards of both companies.
The closing of the transaction is not conditional on SSAB obtaining financing. The transaction will be completed by way of a plan of arrangement under applicable Canadian law. It will require the approval of 66 2/3% of the votes cast by shareholders of IPSCO at a special meeting to be called to consider the arrangement, as well as court approval ruling on the fairness of the transaction. The transaction will also be subject to certain other customary conditions.
SSAB has received commitments for bank financing of the acquisition.
The transaction is expected to be accretive for SSAB and to generate annual post tax synergies of SEK 600 million, with the major part to be realized in the next two years.