Presentation-on-Tata-Corus (1)
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
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