Tata Steel takes Corus Group in giant leap for corporate India
Afp, New Delhi
Indian group Tata Steel won the hand of Anglo-Dutch company Corus on Friday in a proposed 6.39-billion-euro deal,creating a global giant and marking the biggest ever foreign foray from the emerging Indian economy. The ambitious expansion highlights the power and international aspirations of corporate India, which is regarded by many economists as a future powerhouse in the world economy. The board of Corus Group recommended acceptance of the terms valuing it at at 4.3 billion pounds, equivalent to 8.07 billion dollars, and was pitched at 455 pence per share. Goldman Sachs analysts said they expected the market to hang on for a higher offer from Tata, using the argument that Corus was the last available steel asset in Europe. They added that an improved Tata bid was more likely than a rival approach because Corus said it had been in talks with a number of companies since last August. The takeover would create a steel group ranking in the top half dozen in the world on the basis of production figures in 2005. Tata and Corus said that they would now form the fifth-biggest steelmaker, but data from the International Iron and Steel Institute places them in sixth position in terms of production volumes in 2005. The takeover, dependent on shareholder and regulatory approval, comes amid a shake-up in the global steel sector.
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