India largest private sector steel company Tata Steel, which is a part of the Tata conglomerate is close to offer a $9.3 billion takeover bid for Corus, the Anglo-Dutch steel company. If everything goes according to the Tata plans, the takeover by the Indian company will create a steel behemoth, the fifth largest in the world.
Tata had been eyeing Corus for some time now. Last week they said that they were looking for some takeovers that includes Corus. Ratan Tata, the chairperson of the Tata group is meeting British prime minister Tony Blair in connection with this.
Earlier this year, Laxmi Niwas Mittal’s Mittal Steel bought rival Arcelor for a whopping $34 billion dollars following a controversial takeover bid resulting in the creation of the world’s largest steel making company.
Corus employs over 47,000 people worldwide. It has reported a pre-tax profit of £580m in 2005. Corus is definitely a very good buy and given the insatiable demand for steel in China and India, Tata will stand to gain everything if the acquisition bid is successful.
New: BBCNews.com
