The board of directors for Corus Group plc agreed to a proposed acquisition by Tata Steel UK Ltd., a wholly owned indirect subsidiary of Tata Steel Ltd., for slightly more than $8 billion. The deal continues to surge in steel mergers and acquisitions that have taken place in the global steel industry.
Corus is ranked as the eighth largest steel maker in the world.Tata, part of the Tata Group conglomerate, is the 56th largest steel producer in the world. Tata has a global steel production of 5.3 million metric tons.
Corus is Europe's second largest steel producer with crude steel production of 18.2 million metric tons, primarily in the UK and the Netherlands.
In making the acquisition, the two companies cited the following reasons: The combined company would create a vertically integrated global steel group with quality, low cost, attractive growth platform in Asia, combined with a leading European steel player; a wide range of products and a strong market position in the automotive, construction and packaging industry; and a committed management staff.
Ratan Tata, chairman of Tata Steel, said: "This proposed acquisition represents a defining moment for Tata Steel and is entirely consistent with our strategy of growth through international expansion.
"Corus and Tata Steel are companies with long, proud histories. We have compatible cultures of commitment to stakeholders and complementary strengths in technology, efficiency, product mix and geographical spread.
"Together we will be even better equipped to remain at the leading edge of the fast changing steel industry."
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