Tata Steel acquired Corus Group in 2007 in a $12.04 billion deal, creating the fifth largest steel company in the world. Tata Steel, founded in India in 1907, had lower production costs and raw material resources, while Corus operated steel plants in the UK and Netherlands. The acquisition provided Tata access to European and global markets, and synergies were expected through technology sharing, cost improvements, and cultural fit between the companies' continuous improvement programs. After a months-long bidding war with Brazilian steelmaker CSN, Tata Steel won Corus with an offer of 608p per share, finalizing the largest Indian acquisition of a foreign company at that time.

2. TATA STEEL
•Founded by Dorabji Tata and Jamshedji Tata
on 25th August 1907.
• Formerlly known as TISCO.
• It was world’s 56th largest steel company and 2nd largest in India.
• The company was also recognized as the world's best steel
producer by World Steel Dynamics in 2005.
• Post Corus merger, Tata steel is India’s second largest and
second most profitable company in private sector.
• Its consolidated revenue of INR 132110 crore and net profit of
over INR 12350 crore on 31st march, 2008.

3. Corus
• It was formed from the merger of Koninklijke Hoogovens N.V.
with British Steel plc. on 6th October, 1999.
• It has major integrated steel plants at Port Talbot, South
Wales: Scunthorpe, North Lincolnshine, Teeside, Cleveland (
all in U.K.) and Ijmuiden (Netherlands)
• Corus Group plc engages in the manufacture, processing, and
distribution of metal products worldwide. It operates in three
divisions: Strip Products, Long Products, Distribution and
Building Systems.
• Group turnover for the year 31st Dec. 2005 was pound 10.142
billion, profits were pound 580 million.

4. Synergies between the two companies
• Tata was one of the lowest cost steel producers in the world
and had self-sufficiency in raw material. Corus was fighting to
keep its productions costs under control and was on the look
out for sources of iron ore.
• Tata had a strong retail and distribution network in India and SE
Asia. This would give the European manufacturer an in-road
into the emerging Asian markets. Tata was a major supplier to
the Indian auto industry and the demand for value added steel
products was growing in this market. Hence there would be a
powerful combination of high quality developed and low cost
high growth markets

5. Synergies between the two companies
• There would be technology transfer and cross-fertilization of
R&D capabilities between the two companies that specialized in
different areas of the value chain
• There was a strong culture fit between the two organizations
both of which highly emphasized on continuous improvement
and ethics. Tata steel's Continuous Improvement Program
‘Aspire’ with the core values : Trusteeship, integrity, respect for
individual, credibility and excellence. Corus's Continuous
Improvement Program ‘The Corus Way’ with the core values :
code of ethics, integrity, creating value in steel, customer focus,
selective growth and respect for our people.

6. Synergies between the two companies
• In November 2006, Brazilian steel marker Companhia
Siderúrgica Nacional (CSN) challenged Tata Steel's proposal
for acquisition. They countered Tata Steel's offer of 455 pence
per share by offering 475 pence per share of Corus.

7. The Deal
On January 31, 2007, following the lack of agreement on an
offer, an auction process was triggered. Following the
conclusion of the auction process (at an unprecedented
length of nine rounds) conducted by the Panel in accordance
with Rule 32.5 of the Code (the "Auction"), Tata Steel
announced the proposed acquisition of Corus Group at 608p
per share, that being 5p more than CSN's top offer of 603p.
The final valuation of Corus was thus put at $12.04 Billion.
This deal is the largest Indian takeover of a foreign company
and will create the world's fifth-largest steel group.

8. Timelines
• On October 20, 2006, Tata Steel announced that it had agreed
to pick up a 100% stake in the Anglo-Dutch steel maker Corus
at 455 pence per share in an all cash deal, cumulatively valued
at GBP 4.3 billion (USD 8.04 billion).
• On November 19, 2006, the Brazilian steel company CSN
launched a counter offer for Corus at 475 pence per share,
valuing it at $8.4 billion.
• On December 11, 2006, Tata preemptively upped the offer to
500 pence, which was within hours trumped by CSN's offer of
515 pence per share, valuing the deal at $ 9.6 Billion. The
Corus board promptly recommended both the revised offers to
its shareholders.

9. • On December 11, 2006, CSN announced a formal offer for the Company at
an offer price of 515 pence per Corus Share, valuing the deal at $ 9.6
Billion.. The CSN Acquisition would also be implemented by way of a
scheme of arrangement and is subject to a pre-condition that either Corus
Shareholders reject the Tata Scheme or the Tata Scheme is otherwise
withdrawn by Corus or lapses. The Corus board promptly recommended
both the revised offers to its shareholders.
• Also on December 19, 2006, UK Watchdog the Panel on Takeovers and
Mergers announced that the last date for each of Tata and CSN to announce
revised offers for the Company, should they wish to do so, is 30 January
2007. They also warned that it would begin an auction procedure if the two
remained in competition.
• On January 31, 2007 Tata Steel won their bid for Corus after offering 608
pence per share, valuing Corus at $11.3bn
Timelines

10. FINAL DEAL STRUCTURE
$3.5–3.8bn infusion from Tata Steel ($2bn as its
equity contribution, $1.5–1.8bn through a bridge
loan)
$5.6bn through a LBO(Leveraged Buyout)
($3.05bn through senior term loan, $2.6bn
through high yield loan)

11. New Board formulation
• Mr. R.N. Tata will be the Chairman of Tata Steel and Corus
• Mr. Jim Leng will be the deputy chairman of Tata Steel and
Corus
• Mr. B Muthuraman, Mr. Ishaat Hussain and Mr. Arun Gandhi to
join the Corus board

12. Born : 28 December 1937 (age 75) Surat,
India
Residence : Colaba, Mumbai, India
Nationality: Indian
Ethnicity : ParsiAlma
Mater : Cornell University
Harvard University
Occupation : Former Chairman of Tata
Group
Religion : Zoroastrianism
Thank you