Tata Steel completes Corus acquisition
02 Apr 2007
Mumbai:
Tata Steel has announced the completion of its £6.2
billion ($12 billion) acquisition of Corus Group plc at
a price of 608 pence per ordinary share in cash.
The combined entity, with a crude steel production capacity
of 27 million tones, will be the world''s fifth largest
steel producer with 84,000 employees across four continents.
Tata Steel is a vertically integrated steel producer and
one of the world''s most profitable steel companies, with
an established and growing presence in India, Southeast
Asia and the Pacific-rim countries. Corus is Europe''s
second largest steel producer, with a high value-added
product range and strong positions in automotive, construction
and packaging.
The combine will create the world''s second most global
steel producer with a combined presence in 45 countries.
"The completion of this acquisition of Corus by Tata Steel is a major step forward in the company''s global strategy and represents an exciting future for both businesses.
Corus''
top management will remain with the enlarged group and
the bringing together of both management teams is an expression
of the strong confidence and trust that exists between
the two organisations. Together we are a well balanced
company, strategically well placed to compete at the leading
edge of a rapidly changing global steel industry,"
Ratan Tata, chairman of Tata Steel and Corus, said.
"With Tata Steel, we have delivered both and the
directors, senior management and other employees of Corus
will see today as the beginning of an exciting new era.
The Corus and Tata Steel combination will enable us to
build on complementary skills in global markets. I am
very much looking forward to working with Mr. Ratan Tata
and the boards and directors in both companies,"
Jim Leng,
retiring chairman of Corus, said.
The completion of the transaction is pursuant to the scheme
of arrangement of the Tata Steel scheme being declared
effective by the High Court of Justice in England and
Wales.
