Stock market chorus of approval for Europe’s largest steel producer

Corus, the new company formed by the merger between British Steel and Koninklijke Hoogovens, started trading on the stock market on Wednesday. The £4bn merger has created Europe’s largest steel producer – third only in the world to market leaders Posco of South Korea and Nippon Steel of Japan. However, the London-based company will still […]

Corus, the new company formed by the merger between British Steel and Koninklijke Hoogovens, started trading on the stock market on Wednesday.

The £4bn merger has created Europe’s largest steel producer – third only in the world to market leaders Posco of South Korea and Nippon Steel of Japan.

However, the London-based company will still only command 3% of the world steel market despite a combined turnover last year of £9.4bn.

City analysts were positive as British Steel wrapped up trading with a slight drop to 161.25p and Corus opened the next morning at 125p.

Joint chief executives John Bryant from British Steel and Fokko Van Duyne from Hoogovens launched the new corporate identity after bullish predictions that Corus would lead further mergers across the European steel industry.

Bryant said: `I am convinced there will be more and we could well play a part in that process.’ Corus is already believed to be eyeing up aluminium firm VAW, which will be shed as part of a £25.4bn merger between Viag and fellow German utility firm Veba.

Executives chose the new name – which means nothing in either English, Dutch or any other language – from 2,000 choices put forward by image consultancy Enterprise IG.