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...
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