Radius Recycling Merger Advances with FTC Clearance

Published 14/05/2025, 11:28
Radius Recycling Merger Advances with FTC Clearance

Radius Recycling, Inc. (NASDAQ:RDUS), previously known as Schnitzer Steel Industries, Inc., announced on Wednesday that it has received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) for its proposed merger with TAI Merger Corporation, a subsidiary of Toyota (NYSE:TM) Tsusho America, Inc. This regulatory milestone, effective May 12, 2025, satisfies one of the conditions for the completion of the merger, which is expected to occur in the second half of 2025. The news comes as RDUS stock trades near its 52-week high of $29.59, having delivered an impressive 98% return year-to-date according to InvestingPro data.

The merger, initially announced on March 13, 2025, will result in Radius Recycling becoming a wholly-owned subsidiary of Toyota Tsusho America, Inc. The transaction is still subject to other customary closing conditions, including approval by Radius shareholders and receipt of additional regulatory clearances. InvestingPro analysis reveals that Radius maintains a 32-year track record of consecutive dividend payments, though it currently operates with a significant debt burden. Discover 8 more exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.

Radius Recycling, headquartered in Portland, Oregon, operates in the wholesale distribution of miscellaneous durable goods. The company’s stock is traded on The Nasdaq Stock Market LLC under the ticker symbol RDUS, with a current market capitalization of $832 million and an overall Financial Health score of FAIR, according to InvestingPro metrics.

The company’s management cautions that this communication contains forward-looking statements that involve risks, uncertainties, and assumptions. These statements are not guarantees of future performance, and actual results could differ materially from those projected. Radius Recycling undertakes no obligation to update or revise forward-looking statements.

This news is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, Radius Recycling Inc. has entered into a definitive merger agreement with Toyota Tsusho America, Inc., a subsidiary of Toyota Tsusho Corporation, in a deal valued at approximately $1.34 billion. Under the terms of the agreement, Toyota Tsusho America will acquire all outstanding shares of Radius Recycling for $30.00 per share in cash. This represents a premium of roughly 115% over the company’s closing share price on March 12, 2025, and a 102% increase over the 90-day volume-weighted average share price. Radius Recycling will maintain its operations from its Portland headquarters, keeping its teams and strategies intact. The merger is designed to enhance the circular economy by improving recycling and waste reduction across various sectors. Radius Recycling’s CEO, Tamara L. Lundgren, and Toyota Tsusho’s President, Ichiro Kashitani, both expressed positive sentiments regarding the merger’s potential for growth and long-term benefits. The transaction is expected to provide Radius with increased financial resources for strategic initiatives and is anticipated to close in the second half of 2025, pending necessary approvals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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