New Delhi: With the bidding war for Corus between Tata Steel and CSN set to escalate further, the European Union on Friday cleared the proposed takeover of British steelmaker Corus Group PLC by Tata Steel.
However, the European Commission's office said that the transaction ''would not impede effective competition'' in Europe.
It’s a neck-and-neck battle between steel giant Tata and its Brazilian counterpart and steel conglomerate CSN as both have run into stiff competition over bidding for acquisition of Corus.
Earlier, right after Tata Steel revised its bid of 500 pence a share for Corus, CSN offered a counter price of 515 pence per share for acquiring Corus, higher than what Tata Steel had offered in its revised bid.
CSN group already owns 3.8 per cent stake in Corus and the new offer it has made is subject to Corus shareholders rejecting Tata steel's bid.
The Corus board had earlier recommended that Tata's revised bid be accepted. However, the same Board now has forwarded the counter offer from Tata’s rival bidder CSN that of 515 pence per share.
The CSN offer is higher than the initial proposal made by it and as well as the revised Tata offer of 500 pence per share, he said.
Tata’s counter offer valued Corus at $9.1 billion. All was going well and the deal was almost set between Tata and Corus until CSN played its counter bid.
While the CSN offer values Corus at 4.9 billion pounds, the counter bid may ruin takeover dreams of Tata Steel as there seems little possibility that the Indian steel giant will be able to offer a higher price than what it offered in its revised bid.
Tata Steel is considered a main player in India.
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