Steel & Tube drops North American ambitions

The company says it will sell its 51% share of A J Forsyth to Ontario-based Russel Metals and its joint venture partner in the investment, Australian-listed OneSteel, will also divest its 49% holding.

The net proceeds are reported to be slightly higher than book value. The transaction should is schedule for completion next week.

STU chief, Nick Calavrias, says the sale will end the company's growth strategy in North America, where it has determined that it is unlikely to obtain acceptable returns over the business cycle.

"We will now focus our growth strategy in Australia and New Zealand where it is considered to be more advantageous for our shareholders".

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