Global seamless pipe producer Tenaris S.A. will acquire Maverick Tube Corp. for $65 per share in cash, it was jointly announced by the two companies. The transaction is valued at $3.185 billion (all prices in U.S. dollars), including Maverick's net debt. The share price represents a premium of approximately 42% to Maverick's closing share price of June 12, 2006, and a premium of approximately 24% to its 90-day average trading price.
The U.S. International Trade Commission (ITC) voted in late June to continue the existing countervailing duty order on circular welded pipe and tube from Turkey; the existing antidumping duty orders on circular welded pipe and tube from Brazil, India, Korea, Mexico, Taiwan, Thailand, and Turkey; and the existing antidumping duty order on light-walled rectangular pipe and tube from Taiwan.
China's stunning economic growth in recent years, particularly in the manufacturing sector, has increased the country's demand for energy and other commodities, which has affected wider global commodity markets in complex ways.
A new study sponsored by four organizations representing steel producers documents the artificial advantages fueling the unprecedented 170% growth rate of the Chinese steel industry from 2000 to 2005. The China Syndrome: How Subsidies and Government Intervention Created the World's Largest Steel Industry details the impact on the U.S. economy of subsidies in the form of tax refunds, cash grants, preferential loans, currency manipulation, discounted interest rates and other preferential Chinese policies on the competitiveness of the international steel market.