ThyssenKrupp considers Corus merger

ThyssenKrupp considers Corus merger

According to recent news in the market, German steelmaker ThyssenKrupp (TK) is considering the possibility of a merger with Anglo-Dutch producer Corus. The potential merger would create a company that produces 36 million tons of steel a year, making it the third largest steel producer in the world, after Luxembourg-based Arcelor and Netherlands-based LNM. According to the head of TK's steel division, Ulrich Middelmann, the merger of TK with Corus was just one of several alternatives the German company is considering as part of its plan to lead further consolidation in the European steel sector. Other potential companies currently being considered as targets for TK's consolidation plans include other medium-sized European steelmakers such as Italian firm Riva, Austrian firm Voestalpine, German firm Salzgitter and Swedish firm SSAB. Separately, TK also announced its interest in a $1.5 billion plan to construct a mill making unfinished steel slab in either Australia, Brazil or Russia, in order to take advantage of the low labor costs and the ready supply of iron ore available in those countries. The slab would then be transported to Europe for final processing.