Strategic Acquisitions Cut Commodity Costs

Marino, Jonathan; MacFadyen, Ken
June 2010
High Yield Report;6/7/2010, Vol. 21 Issue 23, p20
The article focuses on the management by companies of its raw material and commodity costs through acquisitions. It recalls that the move by Steel Dynamics to acquire OmniSource, a scrap metal processor and distributor, can be regarded as one approach for the flat-rolled steel manufacturer to manage costs. It adds that such approach in managing costs has been followed by other companies amid the volatility of commodity prices. According to Charles Dewhurst of BDO Seidman, activity in the U.S. can be triggered by the drive to control commodity costs.


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