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U.S. Steel to acquire Lone Star Technologies

United States Steel Corp. and Lone Star Technologies Inc. announced today that they have entered into a definitive agreement under which U. S. Steel will acquire Lone Star, a manufacturer of welded oilfield tubular goods, for $67.50 per share in cash. The agreement was unanimously approved by the boards of directors of both U. S. Steel and Lone Star.

U. S. Steel expects that the acquisition of Lone Star will strengthen its position as a producer of tubular products for the energy sector and will create North America's largest tubular producer. The company said the transaction will broaden its energy product offerings by joining U. S. Steel's predominantly seamless tubular business with Lone Star's complementary welded tubular business, coupling manufacturing and tubular processing services. Following the transaction, U. S. Steel will have annual North American tubular manufacturing capability of approximately 2.8 million tons.

The transaction is subject to the approval of Lone Star's shareholders and other customary closing conditions, including regulatory approvals, and is expected to close in the second or third quarter of 2007.