Russel forms a key partnership

Article Excerpt

RUSSEL METALS $27.84 (Toronto symbol RUS; TSINetwork Rating: Extra Risk) (www.russelmetals.com; Shares outstanding: 62.3 million; Market cap: $1.7 billion; Dividend yield: 5.5%) and Japan’s Marubeni-Itochu Tubulars America have agreed to combine their respective Canadian OCTG/line pipe businesses. These units sell pipe to oil and gas companies. Over the past several years, business conditions for the OCTG/line pipe industry have changed substantially as a result of a challenging energy market. The move by some manufacturers to cut out middlemen distributors and sell direct to energy customers has also shaken things up. The Russel-Marubeni deal is aimed at creating a business able to thrive in that new environment. Russel Metals is a buy. buy…

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