STOCKHOLM May 30 Sweden's specialty steel
producer SSAB (SSABb.ST), which is bidding for Canadian-U.S.
steel pipe maker Ipsco IPS.TO, intends to sell Ipsco's steel
tube division if the deal goes through, Swedish business daily
Dagens Industri late on Tuesday reported a source as saying.
The paper said on its Web site that a sale of the unit
could bring SSAB near 25 billion Swedish crowns ($3.65
"A divestment of the tube division has the result that the
management of the new SSAB can focus on, and lay all their
energy on developing and strengthening the firm's leading
global position within its leading products steel sheet as well
as steel plate," the paper quoted the "well placed" source as
The paper said that SSAB hopes to sell the division before
The two firms said at the beginning of May that SSAB had
signed a deal to buy Ipsco for $7.7 billion in one of the
largest acquisitions by a Swedish company, and that they expect
to close the deal in the third quarter this year.
The deal must be accepted by two-thirds of Ipsco's
shareholder votes and by regulators.
Ipsco makes steel tubes and plate with an annual capacity
of 4.3 million tons from four steel mills and 11 pipe mills.
The global steel industry has seen a wave of consolidation
as producers bulk up to gain more sway over customers and
suppliers in a booming steel market.