Swot Analysis of Tata Steel Essay

3595 Words Apr 24th, 2013 15 Pages
SWOT Analysis of Tata Steel

Submitted by:
Shubham GOYAL
10903930, RE19B1A01
Assignment 1, MGT 511
Contents

1. About Tata Steel 2. Countries of operation 3. Major Acquisitions 4. Corus acquisition 5. About SWOT analysis 6. Strengths 7. Weaknesses 8. Opportunities 9. Threats

About Tata Steel

Tata Steel Limited (BSE: 500470) (formerly TISCO and Tata Iron and Steel Company Limited) is an Indian multinational steel-making company headquartered in Mumbai, India and a subsidiary of Tata Group. Its marketing headquarter is located at Tata Centre in Kolkata. It is the tenth-largest steel producing company in the world, with an annual crude steel capacity of 23.5 million tonnes, and the largest
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The CSN Acquisition would also be implemented by way of a scheme of arrangement and is subject to a pre-condition that either Corus Shareholders reject the Tata Scheme or the Tata Scheme is otherwise withdrawn by Corus or lapses. The Corus board promptly recommended both the revised offers to its shareholders. * Also on December 19, 2006, UK Watchdog the Panel on Takeovers and Mergers announced that the last date for each of Tata and CSN to announce revised offers for the Company, should they wish to do so, is 30 January 2007. They also warned that it would begin an auction procedure if the two remained in competition. * On January 31, 2007 Tata Steel won their bid for Corus after offering 608 pence per share, valuing Corus at $11.3bn
Final deal structure
$3.5–3.8bn infusion from Tata Steel ($2bn as its equity contribution, $1.5–1.8bn through a bridge loan)
$5.6bn through a LBO ($3.05bn through senior term loan, $2.6bn through high yield loan)

New Board formulation
A new board was formulated with representation from both the companies to provide a common platform for strategy and integration.
Mr. R.N. Tata will be the Chairman of Tata Steel and Corus
Mr. Jim Leng will be the deputy chairman of Tata Steel and Corus
Mr. B Muthuraman, Mr. Ishaat Hussain and Mr. Arun Gandhi to join the Corus board
Strategic and Integration Committee
A 'Strategic and Integration Committee' was formulated to develop and execute the

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