The Australian, Sydney-based steel producer edged out a series of foreign rivals to acquire parts of the Scaw Metals Group in a deal finalized over the weekend in London.
Scaw primarily operates in South America, as well as South Africa, Canada and Australia.
Its main product lines are rolled steel, steel and alloy iron castings, cast alloy iron and forged steel grinding media, chain, steel wire rope, strand and wire products.
OneSteel was advised by Morgan Stanley. AngloAmerican was represented by Goldman Sachs and UBS.
Other bidders included Cap Group of Chile, Koppers and ArcelorMittal.
OneSteel will not raise equity to fund the purchase but draw down on existing debt line, according to sources.
It is understood that Scaw produces about $US100m in earnings before interest tax depreciation.
The purchase represents OneSteel’s first major acquisition under chief Geoff Plummer and its first large step outside Australia. The sale was part of a sweeping divestment program of non-core assets by AngloAmerican, to better focus on its central mining and natural resource operations.