Ruukki formally merges with SSAB

Finnish steel producer Rautaruukki (Ruukki) officially became part of Sweden’s SSAB on Tuesday July 29.

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SSAB gained approval from shareholders representing 95.1% of Ruukki’s shares, according to the final result of SSAB’s share exchange offer, which expired on July 22.

The Stockholm-headquartered company will redeem the outstanding Ruukki shares by offering €11.24 ($15.10) in cash for each share, in accordance with the Finnish Companies Act, SSAB said in a separate statement on Tuesday.

SSAB was granted a secondary listing of its shares on Nasdaq OMX Helsinki on July 28, with trading expected to start on August 1.

The SKr10.1 billion ($1.5 billion) share exchange offer, announced by SSAB in January, was granted regulatory approval by the European Commission on July 14, pending certain divestments.

new executive committee and divisional structure for the merged entity will also be put in place.

The new SSAB has steel production units in Sweden, Finland and the USA with overall capacity of 8.8 million tpy.