Corus accepts 4.1-bn pound Tata Steel offer
Anglo-Dutch steelmaker Corus Group has accepted a takeover bid from Tata Steel for 4.1 billion pounds, the BBC has reported.
The broadcaster said on Thursday, without citing its sources, that the final details were still being discussed, and a formal agreement was expected on Friday.
A spokeswoman for Corus Group declined to comment on the report. The company on Tuesday confirmed it received a takeover approach from India’s biggest private steel firm that values Corus at 4.05 billion pounds.
Tata is interested in the takeover as it would expand its geographic reach while it would help Corus cut its high production costs.
Corus was spawned by the 1999 merger of Dutch firm Hoogovens and British Steel and is the world’s ninth largest steel maker, producing around 18 million tonnes per year.
Its shares have risen in recent months on speculation the Anglo-Dutch group could face a takeover following the recent creation of Arcelor Mittal.
Tata Steel produced more than five million tonnes in the year to March 2006 and aims to reach 7.5 million tonnes by 2008.
Corus has an annual turnover of 18 billion dollars.
