Australia's largest steelmaker BlueScope Steel (BSL) has further expanded into the North American market by completing the acquisition of steel producer, IMSA Steel Corp.
BlueScope's subsidiary, BlueScope Steel North America Corporation acquired IMSA from NYSE-listed Ternium SA for $850 million.
The buy, announced on 20 December, is the first move by the newly appointed chief executive officer Paul O'Malley.
IMSA makes steel products for the non-residential construction market, has sales in 2006 of $1.4 billion and earnings before interest, tax, depreciation and amortisation of $100 million.
It has steel operations in Mexico, Venezuela and Argentina.
BlueScope already has operations in the US, and this move is indicative of further planned expansions.
"The expanded company now has an outstanding geographic footprint and market offer," chief executive officer Paul O'Malley said.
"We will service customers throughout North America with coated steel products, customised pre-engineered buildings, steel building components and insulated foam panels," he said.
The company said the combined businesses will represent approximately 25% of BlueScope Steel's total revenue.
Within three years, BlueScope Steel expects to realise synergies of approximately US$40 million per year from increased product sales, manufacturing improvements and logistics savings.
Shares in BSL closed 32 cents or 3% higher at $10.83.
