(Reuters) - SA Recycling, which will be owned 50% by Simsmetal West LLC
and 50% Adams Steel, will operate within a territory
encompassing Southern California, Arizona, Southern Nevada and
Northern Mexico. The venture will combine Sims' deep water
facility at the Port of Los Angeles with Adams Steel's two
inland shredding operations and extensive network of inland
feeder yards. The new business will be run by George Adams,
current President of Adams Steel, who will report to a board
comprising of eight Directors, four nominated by Sims and four
by Adams Steel. A nominee of Sims will be Chairman of the new
company and Sims will also nominate its Chief Financial
Officer. The combined business will handle in excess of 2
million tonnes of ferrous scrap and nearly 100,000 tonnes of
non ferrous scrap and
have revenues in excess of US$600 million.
Commenting on the merger, which is subject to the
notification and waiting period requirements of the U.S.
Hart-Scott-Rodino Antitrust Improvements Act, Group Chief
Executive, Jeremy Sutcliffe said, "Sims has had a close
association with Adams Steel based around its long term
exclusive supply agreement with the former Hugo Neu operations.
This agreement was due to expire in early 2008 and the
combination of the two businesses is a logical extension of our
existing relationship".
Read more at Reuters.com Mergers News
and 50% Adams Steel, will operate within a territory
encompassing Southern California, Arizona, Southern Nevada and
Northern Mexico. The venture will combine Sims' deep water
facility at the Port of Los Angeles with Adams Steel's two
inland shredding operations and extensive network of inland
feeder yards. The new business will be run by George Adams,
current President of Adams Steel, who will report to a board
comprising of eight Directors, four nominated by Sims and four
by Adams Steel. A nominee of Sims will be Chairman of the new
company and Sims will also nominate its Chief Financial
Officer. The combined business will handle in excess of 2
million tonnes of ferrous scrap and nearly 100,000 tonnes of
non ferrous scrap and
have revenues in excess of US$600 million.
Commenting on the merger, which is subject to the
notification and waiting period requirements of the U.S.
Hart-Scott-Rodino Antitrust Improvements Act, Group Chief
Executive, Jeremy Sutcliffe said, "Sims has had a close
association with Adams Steel based around its long term
exclusive supply agreement with the former Hugo Neu operations.
This agreement was due to expire in early 2008 and the
combination of the two businesses is a logical extension of our
existing relationship".
Read more at Reuters.com Mergers News
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