Thursday, September 28, 2006

Corus climbs after talk of tie-up with emerging market steelmaker

Anglo-Dutch group Corus was in demand yesterday as rumours of a link-up with an emerging markets steel producer continued to swirl around.

Corus has made no secret of its desire to join forces with a low-cost producer of steel slabs from one of the Bric countries (Brazil, Russia, India and China).

At a recent investor lunch, Corus said it was spending 50 per cent of its time seeking to reach a deal.

Traders noted that the latest rumours came just weeks after a delegation of Indian steel executives visited the UK and Europe to promote co-operation in steelmaking technology.

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Rumours about Corus keep continuing to circulate, the last ones relating to Severstahl and Russian connections. It would seem entirely logical for Corus to seek a low cost steelmaking partner at a time when international takeovers and mergers are creating steel superpowers. Whilst Mittal who already had low cost steelmaking facilities, sought a “high profile” European partner, Corus have a high European profile, but no low cost steelmaking capacity. Mittal in reverse, on a smaller scale?

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