Evraz Group S.A. and Oregon Steel Mills said Monday they have signed an agreement under which Evraz will purchase Oregon Steel for $63.25 per share, or $2.3 billion.
According to the agreement, a newly formed Evraz subsidiary will make a cash tender offer for all shares of Oregon Steel common stock and then merge with Oregon Steel.
The offer is expected to begin during the week of November 27, 2006. Once the transaction is complete, Oregon Steel will be a subsidiary of Evraz.
Evraz believes that Oregon Steel’s head office will stay in Portland, Ore., and there will not be any material changes to its employees after the transaction.
Evraz Group S.A. is a vertically-integrated steel and mining business with operations mainly in Russia. The group produced 1.39 million tons of crude steel in 2005.
Oregon Steel Mills has two divisions: The Oregon Steel Division, which produces as-rolled and heat-treated steel plate, coil, welded pipe and structural tubing; and the Rocky Mountain Steel Mills Division, which produces steel rail, rod and bar, and seamless tubular products.