Finnish hard metal manufacturer Rautaruukki Oy and Swedish steel maker SSAB AB have announced plans to merge.
The companies are reportedly combining in an effort to cut costs and increase their competiveness in the currently slow steel sector.
According to SSAB “the combined company will be a Nordic and U.S. based steel company with a global reach and cost-efficient and flexible production”.
SSAB’s chairman, Sverker Martin-Lof, explained that “a combination of SSAB and Rautaruukki has for long been considered logical and the time is now right to pursue this transaction. For SSAB, the proposed acquisition, which is accretive to SSAB´s shareholders, creates a much more flexible European manufacturing platform that positions the company to profitably meet customer demand in the long term”.
Kim Gran, Ruukki’s chairman, added: “The proposed combination has been carefully planned and evaluated and is expected to be highly value creating for the benefit of shareholders of both companies. For us in Rautaruukki this is a natural strategic step which will improve focus and productivity and safeguard a world-class Nordic steel industry. The synergy potential both in steel and construction is significant and offers an excellent platform for improved operations and results.”
Ruukki also manufactures hard plate and wear resistant steel for the mining industry
Ruukki Building Products, Ruukki Building Systems and SSAB’s Plannja will be combined to form a separate business unit.