Nucor Corp. on Tuesday made a friendly takeover bid for Harris Steel Group Inc. worth $1.25 billion Cdn.
Based in Charlotte, N.C., Nucor is offering $46.25 Cdn cash for Toronto-based Harris Steel.
John Harris, chairman and CEO of Harris Steel, along with other family members and company executives have already agreed to sell their shares. They collectively own over 13.7 million of the 27 million shares of Harris Steel that trade on the TSX.
"This transaction richly rewards the confidence our shareholders have placed in us," John Harris said in a release.
"This is a great day for our 3,000-plus employees who have helped create this shareholder value. In Nucor we have found a partner who shares our values, and will respect and nurture the unique culture that has enabled us to thrive," he said.
Shares of Harris Steel rose $2.55, or almost six per cent, to close at $46.04 on the TSX after the Nucor bid was announced.
Harris Steel makes concrete reinforcing steel, wire and heavy industrial steel grating, among other products.
Nucor is a steel recycler, and also fabricates steel in plants across the United States.