Tubos Reunidos is looking for acwuqistions in the Sector, could ba a signal to start to see more consolidation in a depress sector...
Tubos reunidos is only 110m mkt cap....so just a catalyst ans some read across on the sector....
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Merger MarketTubos Reunidos studies acquisitions of tube factories - execTubos Reunidos [BME: TRG], the Spanish maker of seamless steel tubes, is interested in buying companies that specialize in finished tubular products, general manager Enrique Arriola said.The company could study acquisitions in the US, particularly in Texas or Oklahoma, or in Asia, particularly in South Korea, India or Indonesia, Arriola said. Its main aim is to be close to its final clients, he said, adding that deals could come in the short or medium term.Tubos Reunidos hit EUR 19.77m in EBITDA and EUR 352.4m in net revenues last year. It has a net financial debt of EUR 179.4m and EUR 22.5m in cash and cash equivalents at the end of the first quarter. It has a market capitalization of EUR 111.8m.Many of the company’s clients are in the oil and gas industry. Although low oil prices have hurt investment levels in the sector, the price of potential targets has also fallen, the executive said.Tubos Reunidos’ last deal was a joint venture (JV) with Marubeni-Itochu Tubulars Europe (MITE), the UK subsidiary of Marubeni-Itochu Steel, to build a new factory to manufacture, market and supply premium oil country tubular goods (OCTG) in 2014. The JV is 51% owned by Tubos Reunidos and 49% owned by MITE.