Updated from 11:41 a.m. EST

Steelmaker Nucor ( NUE) has made a $1.07 billion offer for Canada¿s Harris Steel (HSG:Toronto), in the latest example of the consolidation sweeping the steel industry.

Charlotte, N.C.-based Nucor announced the deal Tuesday morning, saying it would pay C$46.25 in cash for each share of Harris Steel, which trades on the Toronto Stock Exchange. That represents a 6.3% premium to Harris Steel¿s C$43.49 share price at Friday's close.

The estimated $1.07 billion purchase price doesn't include the $106 million in net debt Harris Steel carried on its books at the end of September.

The board and top managers of Harris Steel have responded positively. The board is unanimously recommending that shareholders accept it. Meanwhile, John Harris, the company's chairman and CEO; other Harris family members; and Paul Kelly, the company's president and COO, have entered into an agreement to irrevocably tender their shares to Nucor. Their shares account for more than half of the Harris Steel's outstanding stock.

Harris Steel reported earnings of $72.84 million on revenue of $1.19 billion for the 12 months ended Sept. 30.

Nucor says it expects the acquisition to be immediately accretive to its results. It plans to operate Harris Steel as a separate, wholly owned subsidiary.

"The acquisition of Harris Steel Group significantly advances Nucor's downstream growth initiatives," said Nucor Chairman and CEO Dan DiMicco in a news release announcing the acquisition. "Harris Steel provides Nucor with immediate and broad geographical reach and with considerable scale and growth opportunities."

Nucor shares finished Friday at $54.66. U.S. markets were closed Tuesday in observance of President Ford¿s funeral service.

In Toronto, Harris Steel shares were trading up C$2.52, or 5.8%, at C$46.01 Tuesday afternoon.

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