TMK, Interpipe in merger talks
Russia’s TMK, the world’s third-largest steel pipe maker by market capitalisation, is in merger talks with Ukraine’s No.1 producer Interpipe, market sources close to the negotiations said on Tuesday.
By Agencies |
MOSCOW: Russia’s TMK, the world’s third-largest steel pipe maker by market capitalisation, is in merger talks with Ukraine’s No.1 producer Interpipe, market sources close to the negotiations said on Tuesday. TMK, which raised over $1 billion at a London listing last year, has annual revenues of over $3 billion and a market capitalisation of just under $8 billion.
“The companies are in merger talks,” said one market source. “The process is moving on. There are active discussions about a merger,” said another. TMK officials were not available for comment. One investment banker following the sector said he expected a busy deal pipeline. “Everybody is talking to everybody else in steel and mining. There are combinations of every shape and form under discussion,” the banker said.
Another investment banker predicted “a lot of movement” in the pipe sector in Russia in the coming months. “We expect to see purchases and consolidation,” he said. Soaring oil prices and an oil and gas exploration boom has boosted demand for steel pipes globally, the reason why many analysts are bullish about TMK’s prospects. TMK accounts for 56% of Russia’s steel pipe exports and supplies products to companies in over 60 countries.
“The companies are in merger talks,” said one market source. “The process is moving on. There are active discussions about a merger,” said another. TMK officials were not available for comment. One investment banker following the sector said he expected a busy deal pipeline. “Everybody is talking to everybody else in steel and mining. There are combinations of every shape and form under discussion,” the banker said.
Another investment banker predicted “a lot of movement” in the pipe sector in Russia in the coming months. “We expect to see purchases and consolidation,” he said. Soaring oil prices and an oil and gas exploration boom has boosted demand for steel pipes globally, the reason why many analysts are bullish about TMK’s prospects. TMK accounts for 56% of Russia’s steel pipe exports and supplies products to companies in over 60 countries.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
