Tata Steel’s landmark acquisition of Corus earlier this year has prompted the Corus Dutch Central Works Council (CWC), an advisory body established to promote the interests of Corus Nederland and its workforce, to appoint Ernst & Young to examine the future financial implications of the deal.
The acquisition of Corus for US$12 billion made Tata Steel the world’s sixth largest steel producer.
Law firm Holland van Gijzen has been called upon by CWC to look into the legal implications of the transaction.
Under the Dutch Works Council Act, CWC has the right to advise on any proposed decision regarding a transfer of control of Corus Nederland. CWC may also take legal action before the Enterprise Chamber of the Amsterdam Court of Appeals if no advice is sought or if the management board intends to proceed with implementing a decision despite receiving negative advice from, or deviating from conditions set by, the council.
According to a report in the Business Standard, CWC is concerned about the loan debt and high loan interest stemming from the acquisition.
Herbert Smith advised Tata Steel on the merger, while Slaughter & May and Shearman & Sterling advised Corus.
