Evraz, Russia's leading steel and mining company, announced November 20 a deal to purchase Oregon Steel Mills, one of the most diversified steel manufacturers in North America, for $2.3 billion.
The deal stipulated a cash offer by Evraz for all outstanding shares of Oregon Steel's common stock at $63.25 per share.
The offer was earlier expected to expire at 5:00 p.m. New York time January 9.
The newspaper The Oregonian, published in the state of Oregon, said Wednesday that the Committee on Foreign Investment in the United States (CFIUS) has concluded its 30-day review related to Evraz's proposed acquisition of Oregon Steel Mills and approved the deal.
According to the Oregonian, the U.S. government sees no obstacles to the deal from the national security standpoint.
Oregon Steel Mills, which produces a wide range of specialty steel products, is also one of two armor plate suppliers in the United States for Humvee Army jeeps ordered by the U.S. Defense Department.
Evraz earlier said it will buy the shares through its subsidiary, Oscar Acquisition Merger Sub Inc. After the deal goes through, Oregon Steel will become a subsidiary of Evraz.
As of January 9, Evraz Group agreed to acquire 13,111,392 shares under the offer, or about 36.6% of outstanding shares of Oregon Steel's common stock.
Jim Declusin, Oregon Steel Mills president and chief executive officer, earlier said: "We believe that this offer represents an attractive opportunity for Oregon Steel's shareholders to realize the value of their investment in the company. We are pleased to join with Evraz and become part of a leading global steelmaker, with complementary strengths and markets."
In August, Evraz Group, which produced nearly 14 million metric tons of steel in 2005 and posted revenue of $6.5 billion, sold 41% of its stock to U.K.-based Millhouse Capital, which manages Russian billionaire Roman Abramovich's assets.
The company did not disclose the price, but experts valued the deal at $2.7-3 billion.
