The boards of Tata Steel and Corus have announced that Tata will acquire Corus at a price of 455 pence in cash for each Corus Share, valuing Corus at £4.3bn.
Tata Steel is India’s largest private sector steel company with 2005/06 revenues of $5bn and crude steel production of 5.3 million tonnes across India and South-East Asia. It is a vertically integrated manufacturer and is one of the world’s most profitable steel companies. Tata Sons, Tata Steel and other Tata companies had combined revenues in 2005/06 of approximately $22bn. Tata Sons’ current investments are valued at approximately $50bn.
Corus is Europe’s second largest steel producer with revenues in 2005 of £9.2bn and crude steel production of 18.2 million tonnes, primarily in the UK and the Netherlands.
The acquisition will be made by Tata Steel UK, a wholly-owned indirect subsidiary of Tata Steel.