Corus defends Tata Steel takeover bid
Corus chief executive Philippe Varin defended on Friday the 4.3 billion pound ($8.20 billion) agreed takeover offer from Tata Steel that would create the world’s fifth-largest steelmaker.
The offer came at the right time and will preserve the identity of both companies, he said at an industry conference in Germany.
The Anglo-Dutch steelmaker last month approved the Tata offer, which Varin said remained on track. Official offer documents could be published on Friday or Saturday, he said, expressing confidence the deal could close by January.
He declined comment on prospects of possible counter offers.
The deal, India’s largest ever foreign takeover, extends a wave of consolidation in the fragmented steel sector and follows Mittal Steel’s $33 billion acquisition of rival Arcelor this year.
Consolidation in the steel sector is set to continue, said Varin, who is also head of European steel association Eurofer. He cited China and Russia in particular as places where merger activity could accelerate, but said more steps were also possible in Europe.
Varin said he was confident that demand for steel in Europe would remain strong but added the sector had to keep an eye on imports from China and on energy prices.
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