Evraz Group S.A has announced that it has completed its acquisition of IPSCO’s Canadian plate and pipe business.

Evraz announced the acquisition of the IPSCO Tubulars business from SSAB in March 2008. After a back to back transaction with OAO TMK that consisted of an on sale of the acquired IPSCO’s US businesses to TMK for USD 1.25 billion, the total cash consideration paid by Evraz for the assets amounted approximately to USD 2.9 billion. The original amount was adjusted to include the acquisition of a cut to length facility in Surrey, BC as well as certain IPSCO Canada working capital adjustment.

In addition, Evraz expects to sell the remaining acquired US businesses of IPSCO Tubulars to TMK for approximately USD 0.5 billion in 2009. As a result of these transactions, the net cost of the acquisition for Evraz will make up USD 2.4 billion.

Former IPSCO’s Canadian assets including the Regina Steel mill as well as plate and pipe production capacities in Regina, Calgary and Red Deer are now part of Evraz’s North American operations.

The transaction was financed in part out of the proceeds of the recent Eurobond issue.