Presentation-on-Tata-Corus (1)

Topics: Steel, Corus Group, Tata Group Pages: 4 (738 words) Published: February 7, 2013
TATA & CORUS (A case of Acquisition)

COMPANY’S PROFILE
TATA STEEL • Founded in 1907,byJamsetji Nusserwanji Tata. • Tata company listed on BSE and NSE and employs about 82700 (2007) people. • started with a production capacity of 1,00,000 tones has transformed into a global giant .

• Its revenue in 2005-2006 was 5.0 billion US $.
• It has a main steel plant located at Jamshedpur. • The Company also has three Greenfield steel projects in the states of Jharkhand, Orissa and Chhattisgarh.

CORUS STEEL • Corus is Europe's second largest steel producer. • Corus group was formed on 6th October 1999. • Company has four divisions: Strip product , Long product , Aluminum and Distribution and Building system.

• Corus main steelmaking operations primarily in the UK and the Netherland. • Corus provides innovative solutions.

• It is listed on London stock exchange.

VISION
We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship

CHALLENGES
1. 2. • • • FINANCIAL ASPECTS. NON FINANCIAL ASPECTS Cultural differences Structures and Compensation models Foreign ‘political’ Environment.

THE DEAL

ABOUT THE DEAL
• TATA Acquired CORUS on 2nd April 2007 which is 4 times larger than its size. • The deal price was $ 12 Billion. • TATA Steel,the winner of the auction for CORUS declares a bid of 608 Pence per share.

• In 2005 when the deal was started the price per share was 455 pence. • TATA Surpassed the final bid from Brazilian steel maker ‘COMPANHIA SIDERURGICA NACIONAL’ (CSN) of 603 pence per share. • The combined entity has become the world’s fifth largest steelmaker after the deal.

• For this deal TATA has finance only 4 Billion $ from internal company resources. • TATA Have secured funding commitments from its advisors. • These advisors were Deutshe bank,ABN Amro and Standard Chartered.

IMPORTANCE OF DEAL
FOR TATA • The initial motive behind the deal was not CORUS revenue size but rather its...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Structuring the Deal Tata and Corus Essay
  • Essay on TATA CORUS
  • Tata Acquires Corus Essay
  • Essay about Tata Corus
  • Tata Corus Acquisition Essay
  • Tata Corus Case Essay
  • The Tata & Corus M&a Deal Essay
  • Tata Corus Acquisition Essay

Become a StudyMode Member

Sign Up - It's Free