IPSCO, a manufacturer of Steel Pipe, announced to buy NS Group, a manufacturer of tubular steel product, in cash deal of $ 1.46 billion. With this step, IPSCO intends to increase its production of steel and other metal products that are used in energy Industry.

"This coalition represents a compelling strategic opportunity for IPSCO to become the premier supplier to the oil and natural gas sector in North America, by substantially expanding production capacity & pipe product offering," said David Sutherland, CEO of IPSCO in CBC News.

After the deal's completion, IPSCO is anticipating the annual revenue of at least $ 4 billion by 2006 end.

"The deal seems great as both firms manufacture products that are complementary to each other. With the deal in hand, IPSCO is hopeful to become a key supplier to the Energy Industry in future," said an analyst at RNCOS.

According to IPSCO, the take-over, financed through cash & debt, will add up to its earnings in 2007 and IPSCO expects more than $ 50 million in tax savings, with the completion of acquisition.

"The merger of NS Group & IPSCO will provide our workers an opportunity to be a unit of a larger enterprise. IPSCO has specified that it is their aim to build on our outstanding platform and persist to foster the business over the long term," said Rene Robichaud, CEO of NS Group.