Russian Steel Giant, Evraz, To Buy Oregon Steel For $2.3 Billion Dollars
Russian steel giant, Evraz Group, has made an offer to buy Portland, Oregon based Oregon Steel for $2.3 in stock value, or about 22% higher than the current value of Oregon Steel stock to gain an important Russian entry into the U.S. market. Given the massive financial strength of Evraz group which is also a major producer of coal, ore and vanadium, which was thought to be valued at around a $5.15 billion equity after floating some 8% of London stock issues in 2005, it proves an agressive plan for this Russian steel giant to gain an important foothold in the weakened U.S. steel industry, where most of the Pennsylvania based American steel mills are either in bankruptcy or in very soft financial condition.
As the American steel industry, like other American manufacturing continues to erode, foreign companies from Japan, China and now even Russia, find these companies to be prime take-over targets. This only furthers the trend of the decline of American industry and the piece by piece take-over of the American economy by powerful foreign industries.