Tata wins Corus bid
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Manufacturing News, Source : TheManufacturer.com
Published : 31 Jan 2007 9:39
India's Tata Steel has won its bid to take over European steel-maker Corus despite tough competition from Brazilian rival CSN.
The Tata Group, which owns Tetley tea and Daewoo cars, originally offered $9.2 billion in October last year but was later trumped by Brazilian company CSN. The acquisition was finally announced today after Tata agreed an offer of 608p per share, valuing Corus at $11.3 billion (£5.75 billion).
Tata plans to use the acquisition to help expand its reach into Europe to become a global player in the steel business, making it the 5th largest steel producer in the world.
Talking at a news conference in Mumbai, Tata chairman Ratan Tata said: "Over the next few years, we will come to think this was a very visionary move that has had long-term repercussions that are very positive for India," Tata said.
"When we made our first bid to acquire Corus many thought it was an audacious move. I am glad to say that we were able to win the auction away from the Brazilian company, and happily Corus has been acquired by an Indian company."
Corus shares jumped by nearly 7 per cent in early trading in London, however, shares in Tata fell 10.7 per cent. Investors are concerned about the short-term financial impact on the Indian firm.
Corus currently employs 47,300 people worldwide, which includes a UK employment figure of 24,000 across its three plants in Port Talbot, Scunthorpe and Rotherham. Tata has stated that the takeover will not lead to job losses within the first phase.
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