Tata Steel Background :
Tata Steel Background • Tata Steel a part of the Tata group, one of the largest diversified business conglomerates in India.
• In the mid- 1990s, Tata steel emerged as Asia’s first and India’s largest integrated steel producer in the private sector.
• In February 2005, Tata steel acquisition the Singapore based steel manufacturer NatSteel, let the company gain access to major Asian markets and Australia.
• Tata steel acquired the Thailand based Millennium Steel in December 2005.
• Tata Steel generated net sales of 5 billion in the financial year 2006-07
SWOT Analysis :
SWOT Analysis
Corus Background :
Corus Background • Hoogovens had good access to the sea for the supply of raw materials and export of finished goods.
• The company was established at Ijmuiden, a town on the north sea coast with good access inland via the North Sea Canal.
• On October 06, 1999, Hoogovens(38.3%) merged with British Steel Plc(61.7%) to form Corus Group Plc.
• Philippe Varin(CEO) and Jim Leng chairman of Corus, both worked to revive the company’s business.
• The company reduced debt by selling its
SWOT Analysis :
SWOT Analysis
Slide 7:
Tata acquired Corus, which is four times larger than its size and the largest steel producer in the U.K. The deal, which creates the world's fifth-largest steelmaker, is India's largest ever foreign takeover and follows Mittal Steel's $31 billion acquisition of rival Arcelor in the same year.
Tata acquired Corus on the 2nd of April 2007 for a price of $12 billion. The price per share was 608 pence, which is 33.6% higher than the first offer which was 455 pence.
Negotiation By Tata :
Negotiation By Tata September 20, 2006 : Corus Steel has decided to acquire a strategic partnership with a Company that is a low cost producer
October 6, 2006 : The initial offer from Tata Steel is 455 pence per share considered to be too low both by Corus and analysts.
November 18, 2006 : The battle over Corus intensifies when Brazilian group CSN approached the board of the company with a bid of 475p per share
December 18, 2006 : Within hours of Tata Steel increasing its original bid for Corus to 500 pence per share, Brazil's CSN made its formal counter bid for Corus at 515 pence per share in cash, 3% more than Tata Steel's Offer.
January 31, 2007 : Britain's Takeover Panel announces in an e-mailed statement that after an auction Tata Steel had agreed to offer Corus investors 608 pence per share in cash
April 2, 2007 : Tata Steel manages to win the acquisition to CSN and has the full voting support from Corus’ shareholders