Corus in takeover talks with Brazil's CSN

Corus, the Anglo-Dutch steel and aluminium maker, revealed last night it was discussing a possible tie-up with the Brazilian steel producer Companhia Siderurgica Nacional (CSN), confirming weeks of speculation.

The world's eighth biggest steel maker said no agreement had been reached so far with CSN and that any deal would involve the issue of Corus shares. It gave no further details of the talks.

Rumours in the financial sectors have suggested Corus might pay up to $2 billion (€2.05bn) for CSN, as it raises money from selling aluminium and stainless steel assets to focus on its carbon steel business. CSN said in May, however, that its leading shareholder Vicunha Group had no plans to relinquish its 46.5 per cent voting stake. It declined to comment.

"If a transaction were to proceed, it would require, inter alia, the consent of a number of parties and would be subject to a number of conditions,"​ Corus said. "There can, therefore, be no assurance that current discussions will result in any transaction between the two parties."​

CSN is Brazil's fourth biggest steel producer and was formed 60 years ago. It was privatised in 1993. The company made a surprise R$198m loss in the first quarter after higher than expected foreign exchange losses owing to the weakness of the Brazilian currency. Apart from producing steel for the automotive and construction, it is also heavily involved in food and can packaging for the food industry, as is Corus. CSN has facilities in Panama and the Caymen Islands as well as Brazil.

Corus, which has been closing plants and slashing jobs to counter weak steel prices, last week sold its 23.3 per cent stake in the stainless steel firm AvestaPolarit and also short-listed bidders for its aluminium assets, which are expected to fetch €1,200 to €1,400 million.Analysts said Corus has been clearing the decks for its first big acquisition.