Tenaris Expands in US

Luxembourg-based Tenaris, controlled by Argentina’s Techint, has made another US acquisition to consolidate its expansion into the North American market. The steel tube producer has agreed to pay $2.16 billion for Hydril a Houston-based firm that specializes in making tube connectors and pressure control products for the oil and gas industry. The company said it would finance the purchase using cash and $1.5 billion of debt. Last year, Tenaris paid $2.4 billion for steel tube producer Maverick Tube to enter the North American market. Sector analysts see the latest acquisition as a complement to the purchase last year and expect to see significant synergies once the two companies are integrated. Citigroup Global Markets advised Tenaris in the Hydril deal, while Credit Suisse and USBX Advisory Services guided Hydril.