December 02, 2008

Acquisition Of Chaparral Steel by Gerdau Ameristeel clears antitrust hurdle

Chaparral Steel Company and Gerdau Ameristeel Corporation announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with the Agreement and Plan of Merger signed by Chaparral, Gerdau Ameristeel and certain other parties expired at 11:59 PM Eastern Time on August 22, 2007 without action by either the Federal Trade Commission or the Department of Justice.

Expiration of the HSR waiting period without action by such regulators is a condition to completion of the proposed merger. However, the consummation of the merger remains subject to other customary conditions, including adoption of the Agreement and Plan of Merger by Chaparral's stockholders.

On July 10th 2007, Gerdau Ameristeel had announced that it agreed to acquire Chaparral Steel Company, a manufacturer of structural steel and steel bar products, for USD 86 per share in cash, aggregating to a total price of USD 4.22 billion.

The Midlothian, Texas based Chaparral Steel operates two mini mills, located in Texas and Virginia. The company has approximately 1,400 employees and an annual installed capacity of 2.9 million tons. For fiscal 2007 the company reported earnings of USD 269.3 million on net sales of USD 1.72 billion.