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Corus Signs MoU with Marcegaglia and Dongkuk on Sale of Teesside

02/02/2009 - Corus, Marcegaglia SpA and Dongkuk Steel Mill sign Memorandum of Understanding for Marcegaglia and Dongkuk to jointly acquire a majority stake in Corus’ Teesside Cast Products business.

Corus, Marcegaglia SpA and Dongkuk Steel Mill Co Ltd have signed a Memorandum of Understanding with the intention of Marcegaglia and Dongkuk jointly acquiring a majority stake in Corus’ Teesside Cast Products business.
 
Marcegaglia would have the largest equity interest, with Corus retaining a minority holding.
 
“The proposed change of ownership fits the business plans of all participants and will significantly improve prospects for the further long-term development of steelmaking on Teesside,” commented Phil Dryden, Divisional Director Corus Long Products.
 
Marcegaglia and Dongkuk are part of a four-member Consortium that has a slab Offtake Agreement with Corus. The other two members of the Consortium — Alvory SA (a subsidiary of Ternium SA) and Duferco Participations Holding Ltd (through Steel Invest Finance (Luxembourg) SA) — have confirmed they will continue as Offtakers in a revised arrangement after the change in ownership.
 
Marcegaglia and Dongkuk will now undertake due diligence as they work to finalize the terms of an acquisition agreement.