NEW YORK Market
sources are expecting little change at Sooner Inc. after its
takeover by Japanese trading firm Marubeni-Itochu Steel Inc.
"As long as the top
people stay, I dont see any major changes," one trader
said following the announcement that MISI had reached an
agreement to buy the U.S. oil country tubular goods distributor
for $600 million (
amm.com, Sept. 9).
Sources said that
Houston-based Sooner had been operating successfully for a
number of years, so significant changes likely would not be in
MISIs interest. "I would guess that if theyre
smart, theyll let Sooner run the business the way they
have," one southern distributor source said.
Sources said that Oil
States International Inc. had been looking to sell Sooner for
about a year as it is facing shareholder pressure to spin off
some of its businesses, while MISI, a joint venture between
Marubeni Corp. and Itochu Corp., was looking to expand its
presence in the domestically sourced pipe market.
"It had to do with
maybe expanding (MISIs) ability to sell domestically in
this country and being able to sell domestic product," the
southern distributor source said.
The trader estimated
that more than 80 percent of Sooners supply comes from
MISI and Sooner did
not return requests for comment.