U.S. Steel Makes Bid for Lone Star

United States Steel Corp., Pittsburgh, plans to buy Lone Star Technologies Inc., Dallas, a maker of pipe and steel used largely in the oil industry.

According to an AP news item, a $2.1 billion cash deal has been arranged that is schedule to close in mid-2007.

“U.S. Steel will be better positioned to serve the international oil and natural gas industry as the provider of choice for tubular products,” U.S. Steel chairman and CEO John P. Surma has said in a statement.

The transaction will involve U.S. Steel pay $67.50 per Lone Star share. The company’s stock trades on the New York Stock Exchange.

The company’s mill in Lone Star, Texas, includes a 600,000 tpy electric arc furnace as well as a rolling mill, two pipe mills and finishing lines.

The deal is subject to approval from Lone Star shareholders as well as regulatory authorities.