Russia's PAO TMK has announced that it has agreed to sell its US-based Ipsco Tubulars to Tenaris for $1.2 billion.
The deal is subject to regulatory approvals, including approval by the U.S. antitrust authorities, and other customary conditions.
Dmitry Pumpyanskiy, chairman of TMK, said: “TMK Board and management are pleased with this transaction. It is in line with our strategy, which underlines monetisation of our international assets."
Paolo Rocca, chairman and CEO of Tenaris, said: “Over the past 15 years, we have been expanding our manufacturing presence and positioning in the U.S. market. This acquisition would mark a further step in our journey as a domestic producer and supplier to the U.S. oil and gas industry.”
IPSCO Tubulars is a U.S. domestic producer of seamless and welded OCTG and line pipe products, with an annual production capacity of 450,000 metric tons of steel bars, 400,000 metric tons of seamless pipe and 1,000,000 metric tons of welded pipe, and production facilities spread throughout the country.
Tenaris said that the deal would enhance its position and local manufacturing presence in the U.S. market, extending its product offering and expanding its service footprint.