March 14 (Bloomberg) -- Evraz Group SA, the steelmaker part owned by Russian billionaire Roman Abramovich, agreed to pay SSAB Svenskt Staal AB $4.03 billion for North American assets after steel prices rose and the dollar slumped.

The company will buy the Canadian plate and pipe business and the U.S. tube business of SSAB's Ipsco unit, Luxembourg-based Evraz said today in a statement. It also agreed to sell on parts of the U.S. assets to OAO TMK, a Russian maker of oil and gas pipes, for $1.7 billion.

Evraz has spent about $3 billion in the past 14 months expanding into the U.S. as the dollar's decline makes exports more competitive. Prices for steel plate and tube in the U.S., the world's largest market for the alloy after China, are ``phenomenal,'' said Robert Edwards, a Moscow-based analyst at Renaissance Capital.

``This gives Evraz total dominance of the U.S. plate market,'' Edwards, who has a ``buy'' rating on the shares, said today in a telephone interview in London. ``In our experience, Evraz haven't done bad deals.''

Evraz's depository receipts closed unchanged at $90 in London, valuing the company at $31.9 billion. The shares have gained 16 percent since the start of the year. SSAB shares advanced 8.5 kronor, or 4.8 percent, to 187 kronor in Stockholm.

Energy, Infrastructure

``This deal will increase our exposure to the attractive energy and infrastructure sectors throughout the region,'' Evraz Chief Executive Officer Alexander Frolov said in the statement.

The company bought Delaware-based Claymont Steel Holdings Inc. for $564.8 million last year, and paid $2.3 billion last year for Portland-based Oregon Steel Mills Inc., the biggest maker of steel-rail products in the U.S.

On Feb. 18, Evraz said it agreed to buy 10 percent of Singapore-based steel trader Delong Holdings Ltd. in a deal that may lead to a S$2.1 billion ($1.5 billion) takeover. Delong, which manufactures hot-rolled steel coils in China, would be Evraz's first acquisition in Asia.

Abramovich, Russia's richest man and owner of the U.K.'s Chelsea soccer club, bought 41 percent of Evraz in August 2006, less than a year after selling oil company OAO Sibneft for $13.1 billion. He's also the governor of the Russian region of Chukotka in the northeast of the country.

Russian Construction

Evraz, Russia's largest steelmaker, is also benefiting from the 980 billion rubles ($38 billion) pledged by the government for homebuilding by 2010. Projects including the Sochi 2014 Winter Olympic complex are driving domestic demand and Evraz is diverting more steel into its home market to take advantage.

The U.S. Ipsco units are the latest assets to be acquired by foreign companies taking advantage of a weaker dollar. Last month, Kazakh metals company Kazakhmys Plc said it agreed to buy a power station from Arlington, Virginia-based AES Corp for as much as $1.5 billion.

SSAB bought Lisle, Illinois-based Ipsco Inc. for $7.7 billion in May with a bid that was accepted after the auction deadline, thwarting another suitor that had thought it made the best offer. Canada's Globe and Mail newspaper said in May that Evraz was one of the unsuccessful bidders, citing unidentified people familiar with the auction process.

SSAB, based in Stockholm, produces steel sheet for customers including Asian container manufacturers and Swedish truck maker Volvo AB. The company's fourth-quarter profit advanced 19 percent to 1.39 billion kronor ($228 million).

Increased Exploration

TMK, the world's second-largest maker of pipes for the oil and gas industry, is trying to capitalize from growth in new energy supply routes and increased exploration amid record energy prices. The company is based Moscow. TMK depositary receipts rose as much as 5.7 percent to $32.50 in London.

Evraz will finance the acquisition with loans. Credit Suisse Group and Goldman Sachs Group are advising Evraz. Evraz's lawyers were Cleary Gottlieb Steen & Hamilton LLP and Blake, Cassels & Graydon LLP. SSAB was advised by Deutsche Bank AG. TMK was advised by UBS AG and its law firm is Gibson, Dunn & Crutcher.

To contact the reporter on this story: Mark Herlihy in London at mherlihy1@bloomberg.net

Last Updated: March 14, 2008 13:45 EDT