Jan 15 (Reuters) - Worthington Steel said on Thursday that it would buy metal processing firm Kloeckner & Coin in a deal valued at $2.4 billion. (Reporting by Nathan Gomes in Bengaluru; Editing by
Worthington Steel to buy Germany's Kloeckner & Co in $2.4 billion deal; share...
Worthington Steel's Strategic Acquisition
Jan 16 (Reuters) - U.S.-based Worthington Steel plans to buy Germany's Kloeckner & Co in a deal that values the metals trading firm at $2.4 billion, as the company looks to strengthen its position in North America.
Kloeckner & Co, which operates out of around 110 sites across North America and Europe, offers carbon flat-roll steel, electrical steel, aluminum among other products.
The proposed bid of 11 euros per Kloeckner & Co share represents a 28% premium to Thursday's closing price. By 0922 GMT, shares in Kloeckner had surged by 28% to 10.98 euros per share. Shares of Worthington had risen more than 3% in extended trading.
Details of the Deal
The combination would create the second-largest steel service centre company in North America with combined revenues of more than $9.5 billion, Worthington said.
Market Impact and Future Outlook
"By integrating Kloeckner's capabilities in North America and Europe, we will be stronger together, building a more resilient business and driving shareholder value," Worthington CEO Geoff Gilmore said.
Stakeholder Reactions
Swoctem, the investment vehicle of German billionaire Friedhelm Loh and Kloeckner's biggest shareholder, has agreed to tender its 41.53% stake into the offer, which will be subject to a minimal acceptance threshold of 65% of all outstanding shares.
The all-cash deal will be carried out via a voluntary tender offer in Germany and is expected to close in the second half of the year, Worthington said.
Kloeckner said in December that it was in talks with Worthington Steel regarding a potential takeover.
"Worthington Steel brings complementary capabilities, a highly respected reputation and an experienced leadership team that shares our focus on operational excellence and strategic growth," Kloeckner & Co CEO Guido Kerkhoff said.
(Reporting by Nathan Gomes in Bengaluru and Christoph Steitz; Editing by Alan Barona, Anil D'Silva and Louise Heavens)
