Having lost European steelmaker Corus to India’s Tata Steel, Brazil’s CSN is considering other acquisition opportunities, including some back home.
CSN, which put in a £6.3 billion (Rs54,810 crore) bid for Corus, which was trumped by Tata’s £6.7 billion (Rs58,290 crore) offer, is now planning to target other global markets, including Latin America, where the steel industry is passing through a consolidation phase.
“We have taken a look at many opportunities like the Columbian steel company and will now continue to develop and expand the Casa de Pedra iron ore mine and look at other consolidation opportunities, which will arise in the global steel industry,” a CSN spokesperson said.
Thus, the Brazilian company might seek to realize what it says is the unrecognized value of Casa de Pedra, its iron ore mine in Minas Gerais state. The mine produces high-quality ore and is close to CSN’s mill in Rio de Janeiro state and port facilities.
The company is also understood to be looking at acquisition targets in the Russian, Japanese, and North and Eastern European markets. Losing the Corus battle is the second setback for CSN after a failed merger agreement in October with US-based Wheeling-Pittsburgh.
The deal fell apart on resistance from the company’s shareholders and the metal workers’ union. Following this, media reports had said that CSN was likely to take part in an auction for a Columbian steelmaker Acerias Paz de Rio. However, the Columbian company cannot compensate for CSN’s loss, as its annual production is just 2,00,000 tonnes as against 19 million tonnes of Corus.