November 21, 2006	Tuesday	Shawwal 28, 1427

MOSCOW, Nov 20: Russian steel giant Evraz, partly owned by billionaire Roman Abramovich, said on Monday it was buying US firm Oregon Steel Mills for $2.3 billion (1.79 billion euros).

Evraz said that the move would give it a “footprint” in North America as it increases its global reach.

The two companies “have signed a definitive agreement under which Evraz will acquire Oregon Steel for $63.25 per share, or an aggregate price of approximately $2.3 billion,” Evraz said in a statement.

The acquisition by Evraz, of which Abramovich owns 41 per cent, “represents a solid platform for Evraz as a footprint in North America”, the statement quoted Evraz chairman Alexander Frolov as saying.

“This will secure an important place on the attractive plate market and in the expanding pipe business in North America. The combined company will also be the leading rail producer globally,” Frolov said.

“The combination will allow both companies to realise operating synergies based on steady supplies of high quality slabs from Evraz.... Evraz anticipates Oregon Steel's highly efficient pipe operations will provide it access to the expanding North American oil and gas market,” the statement said.

The deal is the latest in a series of foreign acquisitions by Evraz.

Analysts have said that a big merger in the metals sector is backed by President Vladimir Putin, who is pushing for the creation of Russian industrial “champions” with global influence.

Evraz currently owns steel plants in Italy and the Czech Republic in addition to major assets in Russia.

In July, Evraz announced that it had brought a 24.9-per cent-stake in South African steel company Highveld Steel and Vanadium from the mining giant Anglo American and that it planned to increase its stake.

In September, Evraz was reported to be looking at a possible merger with rival Russian metals group Severstal.

Together with Oregon Steel, Evraz expects that this year it will produce over 16.8 million tons of crude steel, a substantial increase from last year's total of 13.9 million tons, the company said.—AFP