CSN makes counter bid for Corus

There's a new twist to the race for Anglo-Dutch steel-maker Corus Group. Tata Steel has a competitor. Jumping into the fray is Brazilian steelmaker CSN or Companhia Siderurgica Nacional, reports CNBC-TV18.

After much speculation on whether CSN will put in a counterbid or not - last evening, it finally did a 475 pence per share offer versus Tata Steel's 455 pence per share offer. This pushes the deal size to USD 8.4 billion, as against Tata Steel's offer of USD 8.1 billion.

CSN points out the synergies that will accrue to a CSN-Corus combine, mainly give Corus access to high quality, low cost iron ore from CSN's Casa De Pedra mine, one of the largest captive mines in the world. CSN says a merger will allow Corus greater access to fast-growing markets like Brazil, Ecuador and South America.

It also expects the deal to give CSN access to global procurement savings and Corus' R&D and engineering expertise. This is reminiscent of what Tata Steel brings to the table for Corus - the synergies are alike. CSN also intends to match the pension contributions promised by Tata Steel.

If CSN is successful, the combined entity will create a company with an annual steel capacity of 24 million tonnes, putting it among the top 5 steel-makers in the world.

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