Charlotte, N.C.-based steelmaker Nucor Corp. said Jan. 2 that it was buying Canada's Harris Steel Group for US$1.07 billion to bolster its concrete-reinforced steel business. The friendly takeover, which has the approval of both companies' boards, is worth $39.70 per Harris Steel share, or 6.3% above the firm's closing price on Dec. 29.
Nucor Chairman and CEO Dan DiMicco noted that the two companies have been in partnership for three years. "Harris Steel provides Nucor with immediate and broad geographical reach and with considerable scale and growth opportunities," he said in a statement.
Harris, which employs about 3,000 people and had sales of $1.2 billion in the last fiscal year, makes concrete-reinforcing steel, wiring and heavy industrial steel grating.
The global steel business has been consolidating as companies respond to a boom caused by robust demand in fast-growing economies such as China. India's Tata Steel and Brazilian rival CSN are locked in a bidding war for Anglo-Dutch giant Corus, as they battle to gain ground on world No. 1 steelmaker Arcelor Mittal. Arcelor Mittal, itself the product of a merger last year, said in late December that it would buy Mexican steel manufacturer Sicartsa.
Copyright Agence France-Presse, 2007
