Tata Steel – Corus Group Plc Acquisition
(Submitted towards Group assignment under Corporate strategy)
Table of Contents
SWOT Analysis of Tata steel
Corus Group Plc.
SWOT Analysis of Corus
Rationale for Acquisition
About the deal
Justification of Deal
10. Tata Steel financial position after the deal
11. Tata Corus: Synergies between the two companies
Tata Steel purchased a 100% stake in the Anglo-Dutch steelmaker Corus Group on January 30, 2007. The acquisition is priced at 608 pence per share in an all cash deal, cumulatively valued at USD 12.04 Billion. The deal is the largest Indian takeover of a foreign company and made Tata Steel the world's fifth-largest steel group.
The Tata Group is an Indian multinational conglomerate company headquartered in the Bombay House in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India. It has interests in chemicals, steel, automobiles, information technology, communication, power, beverages, and hospitality. The Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. The Tata Group has adopted unrelated diversification comprising 114 companies and subsidiaries in eight business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts. Companies which form a major part of the group include Tata Steel (including Tata Steel Europe), Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services, Tata Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata Power, Tata Communications, Tata Teleservices and the Taj Hotels.
Tata Group started its businesses with Tata Steel and diversified into other businesses. Tata Steel holds a very vital place in Indian business history, because it has introduced some of the unique concepts like 8-hour working days, leave with pay and pension system for the first time in India and the first player to start rapid industrialization process. In the later part the concepts invented and implemented by Tata became lawful and compulsory practice for the Indian employees.
Tata Steel', formerly known as TISCO (Tata Iron and Steel Company Limited), was the world's 56th largest and India's 2nd largest steel company with an annual crude steel capacity of 3.8 million tonnes. It is based in Jamshedpur, Jharkhand, India. It is part of the Tata Group of companies. The company was also recognized as the world's best steel producer by World Steel Dynamics in 2005.
Tata Steel’s overseas ventures and investments in global companies have helped the Company create a manufacturing and marketing network in Europe, South East Asia and the Pacific-rim countries. The Group’s South East Asian operations comprise Tata Steel Thailand, a major steel producer in Thailand and is the largest producer of long steel products with a manufacturing capacity of 1.7 mtpa, in which it has 67.1% equity and Nat Steel Holdings based in Singapore and is a leading supplier of premium steel products for the construction industry. It became a 100% subsidiary of Tata Steel in February 2004. NSH produces about 2 MT of steel products annually across its regional operations in the Asia Pacific with presence across seven countries.
Tata Steel holds a very vital place in Indian business history, because it has introduced some of the unique concepts like 8-hour working days, leave with pay and pension system for the first time in India and the first player to start rapid industrialization process. In the later part the concepts invented and implemented by Tata became lawful and...
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