|On January 31, 2007, Tata Steel Limited (Tata Steel), one of the |[pic][pic][pic] |
|leading steel producers in India, acquired the Anglo Dutch steel | |
|producer Corus Group Plc (Corus) for US$ 12.11 billion (€ 8.5 | |
|billion). The process of acquisition concluded only after nine | |
|rounds of bidding against the other bidder for Corus - the Brazil | |
|based Companhia Siderurgica Nacional (CSN). | |
| | |
|This acquisition was the biggest overseas acquisition by an Indian| |
|company. Tata Steel emerged as the fifth largest steel producer in| |
|the world after the acquisition. The acquisition gave Tata Steel | |
|access to Corus' strong distribution network in Europe. | |
Corus' expertise in making the grades of steel used in automobiles and in aerospace could be used to boost Tata Steel's supplies to the Indian automobile market. Corus in turn was expected to benefit from Tata Steel's expertise in low cost manufacturing of steel. However, some financial experts claimed that the price paid by Tata Steel (608 pence per share of Corus) for the acquisition was too high.
Corus had been facing tough times and had reported a substantial decline in profit after tax in the year 2006. Analysts asked... [continues]
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