Tata Steel to merge Corus by Sept '09: report

15 December 2008

Tata Steel, the world's sixth largest steel company is merging its European acquisition, Corus, with itself next September to save on operational costs amid the global decline in demand for steel.

Tata Steel acquired Corus in 2007 in a protracted bidding war with Brazil's CSN for around  $12 billion but coninued to operate the the Anglo-Dutch firm as an unlisted European subsidiary. (See: Tata Steel completes Corus acquisition) 

Quoting a Corus executive, the UK's Daily Mail, reported that the merger will take place in September and the headquarters of the merged company would be located at the Indian head office in Mumbai, India.

The report quoted Alan Todd, construction and development general manager at Corus, "Tata Steel's construction-related assets would benefit from Corus in the UK and the Continent and there would also be huge cost benefits from Tata's supply of raw materials."

The merger would enable Corus save around £350 million in costs and enable it to meet its raw material requirements from Tata Steel.

The report said some Corus executives of would be given seats on the board of Tata Steel and the French-born Corus Stel CEO Philippe Varin would take over as Chief Executive when B. Muthuraman, the long-standing head of Tata Steel steps down in September.