The Tata Corus merger has earned Indian steel giant the status of the fifth largest steel manufacturer of the world. Described as the biggest foreign takeover by an Indian firm by BBC, the deal was values at an estimated $11 billion. The two parties had agreed at a value of 455 pence per share of Corus.
Earlier in 1999, Corus was formed by a merger of Hoogovens, a Dutch group and British Steel. Tata steel, on the other hand has been India's leading steel manufacturer. Corus had …show more content…
“There are not many opportunities for producers in emerging low-cost markets to gain access to the markets of Europe other than by acquiring a company like Corus,” John Quigley (Editor, Industry Publication Steel week)
Thousands of Indians didn’t offer prayers for Tata Steel to clinch the deal for the Anglo-
Dutch steel maker Corus, as they have for the recovery of hospitalized bollywood superstars. Nor did they erect 40-foot billboards of a smiling Ratan Tata, chairman of Tata Steel, after he won Corus. And the stock markets were clearly concerned about the Tata Steel’s new debt load. But despite all this, euphoria gripped the nation. Finance minister P. Chidambaram offered unspecified help, if needed, to close the deal; fellow steel magnate Lakshmi Niwas Mittal cheered the acquisition, and excited TV newsreaders gushed. India’s first Fortune 500 MNC was born. Tata acquired Corus, which is four times larger than its size and the largest steel producer