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Tata Corous

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TATA-CORUS MERGER * The Tata Steel's bid for Corus Steel, the first multi-billion dollar bid for an overseas company, is considered as a landmark case in Indian corporate history. * The Tata Steel's interest in acquiring Corus is in line with its growth objective of entering new, higher end markets and acquiring sophisticated customer base. * Enhanced scale have positioned the combined group as the fifth largest steel company in the world by production and have created vertically integrated global steel company with crude steel output of more than 23 Million Tonnes. * The company would required support of half of the shareholders present at the meeting and 75% of shares in value. * Cost concerns forced Corus to search for a strategic partner. Tata steel is the world's lowest cost producer of steel, while Corus's cost of production is almost twice that of Tata Steel. The deal was finalized on the 31st of January 2006 at an extraordinary general meeting held by Corus. * The climate at the time of Tata’s acquisition of Corus was characterized by an “eat-or-beeaten” mentality in which steel companies increasingly had to decide whether to be an acquirer or an acquisition target. These mergers and acquisitions were expected to eventually result in a handful of worldwide global giants in the steel industry. Merger and acquisition activity in the world steel industry was likely to result in a higher degree of pricing stability and better margins for the steel producing companies.
Company Overview

Tata Steel: Tata Steel is India's largest private sector steel company with revenues of US$ 5.0 billion and crude steel production of 5.3 million tonnes (MT) across India and South-East Asia . It is a vertically integrated manufacturer and is world's lowest cost producer and one amongst the few value creating steel companies. The company has rich...

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