Worthington Steel CEO Confident in Kloeckner Acquisition, Cites Strong Alternatives
Summary
Worthington Steel's CEO expressed high confidence in successfully acquiring German metals trader Kloeckner & Co. by the March 12 deadline, noting that 53% of shares have already been secured. The CEO also revealed that Worthington Steel has "good alternatives" should the $2.4 billion Kloeckner deal not materialize, indicating strategic preparedness. This update is significant given the substantial size of the acquisition relative to Worthington Steel's market capitalization and comes amidst broader consolidation in the North American metals trading sector, as exemplified by Ryerson's recent merger with Olympic Steel. The comments provide insight into the company's strategic flexibility and commitment to growth through M&A, following its recent acquisition of Sitem Group. Traders will be watching the March 12 deadline for the Kloeckner offer for definitive news.
At the time of this announcement, WS was trading at $43.10 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $2.1B. The 52-week trading range was $21.30 to $49.17. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.