An agreement has been reached by the Boards of Corus Group and Brazilian steel producer CSN, for the merger of the two companies. The merged company will combine the strengths of one of Europe’s market leaders, with one the world’s lowest cost steel manufacturers.
Shareholder in Corus will hold 62.4% of the newly formed entity, while shareholders in CSN will receive shares in a new Brazilian holding company TopCo. TopCo will own 37.6% of the new merged company.
The expanded Corus will have operations in Europe, Brazil and North America. They will also have a comprehensive range of flat and long carbon steel products as well a strong distribution network, supported by a well respected research and development facility. Corus will also benefit from coat savings, being able to source low cost iron ore from an expanded mine at Casa de Pedra.
The merger is consistent with the carbon steel growth activities for Corus, such as the recently announced sale of their stainless steel and aluminium interests.
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