IPSCO Inc. (Lisle, IL) and SSAB Svenskt Stal AB (Stockholm, Sweden) announced that they have entered into an agreement providing for IPSCO to be acquired by SSAB for US$160 per share in cash for a total equity value of $7.7 billion. The transaction has been approved by the boards of directors of both companies. The closing of the transaction is not conditional on SSAB obtaining financing. The transaction will be completed by way of a plan of arrangement under applicable Canadian law. It will require the approval of 66-2/3% of the votes cast by shareholders of IPSCO at a special meeting to be called to consider the arrangement, as well as court approval ruling on the fairness of the transaction. The transaction will also be subject to certain other customary conditions.

SSAB has received commitments for bank financing of the acquisition. SSAB intends to pursue a Swedish Krona (SEK) 10 billion rights offering during 2007.

The transaction is expected to be accretive for SSAB and to generate annual post tax synergies of SEK 600 million, with the major part to be realized in the next two years.

IPSCO President and Chief Executive Officer David Sutherland stated, “This transaction delivers significant value to IPSCO’s shareholders. It also joins IPSCO with a leading player in the global steel industry and reinforces our already solid position as a leading supplier of steel plate and energy tubulars in North America.”

SSAB President and Chief Executive Officer Olof Faxander said, “The acquisition of IPSCO represents a further step in SSAB’s 2010 strategy towards global leadership in value-added steel. Through this transaction, SSAB will accelerate its growth and acquire a platform for future expansion and market presence in North America.”

IPSCO is a leading producer of energy tubulars and steel plate in North American with an annual steel making capacity of 4.3 million tons. IPSCO operates four steel mills, eleven pipe mills, and scrap processing centers and product finishing facilities in 25 geographic locations across the United States and Canada.

SSAB is a Swedish- based publicly traded corporation with a leading European position in Quenched & Tempered heavy plate and EHS/UHS steel sheet.