Indian giant Tata steel has won the battle to take over the Anglo-Dutch steelmaker Corus from the Brazilian rival CSN for $11.3 billion and successfully build up world’s fifth-largest steel group.
The Indian company won at night long auction process with a bid of 608 pence outsmarted CSN’s offer of 603p. Together with Corus’s debt, the takeover value is at more than $13 billion.
The result of the auction came as a surprise to industry observers who had expected the Brazilian company to prevail, particularly as it went into the contest with the highest bid on the table of 515p month before.
The takeover battle began last October after Tata started the bidding with an offer of 455p a share and than raised to 500p to try to ward off a rival offer from CSN. But the Brazilian steel maker raised the bid with worth 515p ($9.6 billion).
Than UK Takeover Panel intervene and pick the winner through open bidding. Under the auction norms, each suitor was required to raise bids by a minimum of five pence per share.
Boosted with this win, Tata Steel has now entered the big league of the global steel industry. Tata-Corus would have a combined production of more than 23 million tonnes.
Currently, Arcelor-Mittal is the world’s largest company, followed by Japan’s Nippon Steel and South Korea’s Posco.
Via:BBC
