US anti-trust authorities clear Tata Steel-Corus deal

12 December 2006

US anti-trust authorities have cleared Tata Steel''s proposed acquisition of Anglo-Dutch firm Corus Plc.

The two companies received clearance for the proposed deal from the US Federal Trade Commission on December 8, according to information available on the agency''s website.

The US agency monitors market competitiveness and has an important say in mergers and acquisition deals that have an impact on its market. It also checks anti-competitive or unfair business practices during any proposed merger and acquisition deal.

Brazil''s CSN, which trumped Tata Steel''s 500 pence per share offer with a higher bid of 515 pence per share for Corus, has also filed an application with US anti-trust authorities.

Tata Steel had also approached European Union regulator, the European Commission, on its proposed bid to acquire Corus. The EC is expected to rule by January 3.

Corus, however, seems intent on accepting CSN''s revised offer of £4.9 billion, which came within hours of a sweetened takeover bid by Tata for £4.7 billion.