U.S. Steel on Thursday said it plans to buy Lone Star Technologies , which makes welded pipe used in oil fields, for $2.1 billion in cash.
The deal will strengthen US Steel's line of tubular products for the energy sector and create North America's largest producer of tubular products, the company said.
Pittsburgh-based U.S. Steel said it will pay $67.50 per Lone Star share -- a 39% premium to the stock's closing price of $48.45 Tuesday on the New York Stock Exchange.