TMK in merger talks with Interpipe

According to media reports yesterday, Pipe Metallurgical Company (TMK) is discussing a possible merger with Interpipe.

Yesterday the market was once again agog with reports of a possible merger between Pipe Metallurgical Company and Ukrainian pipe holding Interpipe. Citing TMK’s senior vice president for strategy and business development Vladimir Shmatovich, Interfax wired that the final decision on the transaction could be taken within the next few weeks. That said, only half hour later news broke that TMK denied that the talks could be wrapped up so quickly.

It would appear that talks between the two pipe giants are proceeding apace. However, this is no way implies a successful outcome. In analytics opinion, the transaction would, without doubt, be very much in TMK’s interests, assuming, that is, that Interpipe names a reasonable price.

For the record, Interpipe consists of three large Ukrainian pipe plants: Nizhnedneprovsky and Novomoskovsky, as well as Nikopolsky Seamless Pipe Plant. In the event of a merger with TMK, the enlarged company’s aggregate capacity will total around 4.2 mln t, and could exceed 7 mln t by 2010.