Corus Acquires CSN
European steel company Corus Group announced the purchase of Brazil's leading steel company Companhia Siderúrgica Nacional (CSN) in a stock deal worth $1.8 billion. Corus shareholders will hold 62% of the merged company. Current CSN shareholders will receive 38% of shares through HoldCo, a newly formed listed Brazilian holding company. The sale agreement limits HoldCo's voting rights in Corus to 29.9% for regulatory reasons. CSN is a highly efficient, low-cost producer but is stuck with heavy debts from an ambitious investment program. CSN currently has $2.6 billion of debt and its debt-to-equity ratio has risen to 161.8% at the end of June 2002 from 90.4% in 2000. The CSN acquisition makes Corus the world's fourth-largest steel producer. Corus shares fell 47% following the announcement of the deal and CSN shares have risen 14%. Corus will assume CSN's debts. JP Morgan advised CSN on the deal. HSBC and...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.