After several months of tense negotiations, the Tenaris international group, one of the world's leading piping producers, has successfully acquired Silcotub Zalau, Laminorul Braila and Tubinox Bucharest. In the process it beat the Russian TMK, similarly vying for the companies.
The takeover, finalised yesterday, was done through the acquisition of Tubman International which controlled the three entities, in a $42 million deal.
The latest information available shows Tubman was controlled by a British businessman.
The finalisation of the acquisition can be considered as something of a surprise, as Tenaris announced two months ago that it had backed out of talks for Silcotub.
The group yesterday said the transaction was eventually made after a "quick negotiation."
"For Tenaris, our presence in Romania is a strategic project we want to expand by investing in production facilities and human capital here, in a country that is getting ready to be part of the European Union," Paolo Rocca, Tenaris chairman and chief executive told Ziarul Financiar.
Early this year Tenaris was only looking to buy Silcotub Zalau, a manufacturer of small diameter pipes whose product range complements that of Tenaris in Europe.
The group had to purchase all three companies in the end. The main reason was that the Russian TMK Group had joined the race for Tubman, and was willing to buy every Tubman operation.
TMK owns a piping producer in Romania, Artrom Slatina and Combinatul Siderurgic Resita (Resita Steel Plant).
Eventually, despite having withdrawn from negotiations at some point, Tenaris decided to buy the entire Tubman Group, even though its investment plans chiefly target Silcotub.
"Silcotub's product range perfectly complements the range of products manufactured at Dalmine (the group's Italian factory) and our presence on other European markets in general. Silcotub will consolidate our position on the cold-moulded product segment and is very likely to aid our standing on the automotive components segment. Our presence in the region will also pave the way for further opportunities in other countries in the area: Poland, Slovakia, the Czech Republic, countries that have recently joined the European Union," Paolo Rocca added.
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