Tenaris buys US steel pipe producer for $460 million

July 7 (Reuters) – Tenaris SA (TENR.MI) said on Thursday it would acquire U.S. seamless steel tube producer Benteler Steel & Tube Manufacturing Corp for $460 million as the Luxembourg-based company seeks to expand its manufacturing capabilities in the country.

Tenaris, a global steel tube maker, will acquire 100% of Benteler Steel on a cash-free, debt-free basis, which includes $52 million in working capital, it said in a statement.

Benteler Steel & Tube Manufacturing Corp has an annual tube rolling capacity of up to 400,000 metric tons at its production facility in Shreveport, Louisiana, Tenaris said.

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The deal is subject to regulatory approval from U.S. antitrust authorities and other local entities, Tenaris said. The merger is expected to be finalized during the fourth quarter of 2022.

Earlier in June, without admitting or denying wrongdoing, Tenaris said he would pay $78.1 million to resolve US investigations into his alleged payment of bribes to win contracts with the state oil company. Brazilian Petrobras. Read more

Tenaris reported an increase in first-quarter core earnings, driven by higher oil country tubular goods (OCTG) prices in the Americas and higher line pipe shipments in Europe and South America. Read more

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Reporting by Rhea Binoy in Bengaluru; Editing by Jacqueline Wong

Our standards: The Thomson Reuters Trust Principles.

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