After the completion of the transaction, Nippon Steel, a producer of steel, will become Latinusa's largest shareholder with a 35% stake. Mitsui will hold a 10%, with Nippon Steel Trading and Metal One each having a 5% stake in Latinusa.

Morgan Stanley is advising Nippon Steel on the transaction.

Deal Value (US$ Million) 60
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Announced: 2009-11-11

Deal Participants

Target (Company)     PT Latinusa Tbk (formerly PMDN)
Acquirer 1 (Company) Metal One Corporation
Acquirer 2 (Company) Mitsui & Co., Ltd.
Acquirer 3 (Company) Nippon Steel Corporation
Acquirer 4 (Company) Nippon Steel Trading Co., Ltd.
Vendor (Company)     PT Krakatau Steel

% Acquisition 55%

Currently 93.9 per cent owned by state-run PT Krakatau Steel, Latinusa is the only tinplate maker in Indonesia.

Tinplate is used in beverage and food containers. Nippon Steel has determined that demand for the product will grow in Indonesia as the population increases and the economy grows.

The country needs about 160,000 tons of tinplate annually, but Latinusa is capable of supplying only 120,000 tons a year. After the acquisition, its capacity will be boosted to 160,000 tons.

(Nikkei) cg