Corus accepts takeover bid by Tata Steel
Anglo-Dutch steelmaker Corus has accepted a USD 7.7 billion takeover bid from Tata Steel, the largest Indian takeover of a foreign company.
The final details are now being agreed upon and a formal announcement is expected later, the BBC reported without quoting any source.
The deal is the largest Indian takeover of a foreign company and will create the world’s fifth-largest steel group.
Corus was formed in 1999 following the merger of British Steel and Dutch group Hoogovens. It employs 47,300 worldwide and 24,000 in the UK.
In 2005, Tata Steel was only the world’s 56th biggest steel producer and its takeover of Corus represents its first expansion outside Asia.
The Corus 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 ending March 2006 and aims to reach 7.5 million tonnes by 2008. It has 3.8 billion dollars in annual turnover while Corus has 18 billion dollars.
