A COMPANY described as the world’s leading rail producer is to be created with the US$2?3bn purchase of Oregon Steel Mills by the specially-formed Oscar Acquisition Merger subsidiary of Evraz Group, one of Russia’s largest vertically-integrated steelmakers.The Russian steel and mining company commenced a cash tender offer to purchase the outstanding common stock shares of Oregon Steel Mills on November 30. Expiring on December 28, this follows a definitive agreement between the companies announced on November 20. The board of Oregon Steel Mills has unanimously recommended the bid, under which its stockholders will receive US$63?25 in cash for each share, a 22?3% premium on the three-month weighted average price. Oregon Steel Mills will become a subsidiary of Evraz, which is focusing on high-margin and niche steel products, emphasising profitability rather than size. ’The acquisition of Oregon Steel represents a solid platform for Evraz as a footprint in North America, one of the most important markets globally. This will secure an important place on the attractive plate market and in the expanding pipe business in North America. The combined company will also be the leading rail producer globally’, said Evraz Chairman Alexander Frolov.Credit Suisse is acting as financial advisor to Evraz and will be the dealer-manager for the tender offer, while Cleary Gottlieb Steen & Hamilton LLP is acting as legal counsel. UBS Securities LLC is lead financial advisor to Oregon Steel, KeyBanc Capital Markets advised the board, and Covington & Burling LLP and Schwabe, Williamson & Wyatt are acting as legal counsel.n