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....
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