Tata takes Corus

India-based Tata Steel has won the bid for Corus at GBP 6.08 per share, valuing the company at USD 11.3 billion, or GBP 5.8 billion. Tata’s last offer was some 34% higher than its original bid, made in October 2006. The move will create a company with a steel making capacity of 24m t/y, though Tata is reported to have ambitious expansion plans both within India, South East and East Asia and the Middle East. The new company will become the world’s 5th largest crude steel producer in terms of production/capacity, and the second most global. It will also have a greater share in the world’s fastest growing markets in Asia than Arcelor Mittal, according to an industry observer. The acquisition values Corus at around USD 600/tn of production/capacity, compared with over USD 700/tn for Mittal’s final bid for Arcelor in mid-2006. Analysts also suggest that the purchase is expected to leave both CSN and Tata with considerably increased debt.
Previous articleUAE: gas compression facilities
Next articleSakhalin LNG deliveries will be on time
Stainless Steel World is part of The KCI Media Group, a group of companies focused on building and sustaining global communities in the flow control industries. We publish news on a daily basis and connect business-to-business professionals through our online communities, publications, conferences and exhibitions.