Ipsco Inc. confirmed that it is currently in discussions that could lead to a potential acquisition of the company.

Ipsco said its statement was prompted by market speculation as well as a recent appreciation in the company’s stock price. The statement comes against a backdrop of market watchfulness regarding the potential acquisition of another Canadian steel producer, Algoma Steel Inc. of Sault Ste. Marie.

Ipsco noted that there can be no assurance that a transaction will occur, or as to the timing, structure or terms of any transaction.

Ipsco is a leading producer of energy tubulars and steel plate in North America with an annual steel making capacity of four million tons. With the acquisition of NS Group, Ipsco now operates four steel mills, eleven pipe mills, and scrap processing centers and product finishing facilities in 25 geographic locations across the United States and Canada. The company's pipe mills produce a wide range of seamless and welded energy tubular products, including oil & gas well casing, tubing, line pipe and large-diameter transmission pipe. Ipsco is also a provider of premium connections for oil and gas drilling and production.