CSN wins EU OK to take over Britain's Corus

Our Corporate Bureau
30 January 2007

Brazilian steel maker CSN has been granted EU regulatory approval to buy Corus Group Plc on Monday even as it is locked in battle with Tata Steel for the acquisition of the Anglo-Dutch steel company.

The European Commission, which had earlier last month cleared Tata Steel's bid for Corus, said CSN's takeover would not hurt competition in Europe because the two have only limited overlaps for semi-finished and finished carbon steel products.

The combined market shares of the two companies are low and below a level where the combined entity could significantly affect the volumes or prices of steel products on the market.

The commission also noted that Corus produces semi-finished steel or long carbon steel products in Europe, while CSN's European operations in Portugal, focus on flat carbon steel. Therfore, overlaps were below a level where the companies could affect either the total quantity or the prevailing price in the market, the commission said.

Last month, Companhia Siderurgica Nacional Sa made a $9.6 billion bid for Corus that trumped Tata Steel's enhanced offer of about $9.2 billion.

British takeover regulators' 30 January deadline for both companies to make fresh offers comes into effect today.