Tata Steel on Tuesday announced that it has made a "non-bidding" acquisition offer to British steel giant Corus at an estimated $10 billion, which if successful would be the single largest takeover by an Indian entity abroad.
If accepted by Corus, the deal at £4.55 a share that puts the enterprise value of the UK-based company at over Rs 46,000 crore (Rs 460 billion) would catapult the Indian steel company to the league of world's top ten steelmakers.
Tatas are out to conquer the world
The offer to Corus is part of the aggressive acquisition and takeover strategy of the Tata Group across the globe, particularly in Europe and the US, where it acquired mineral water maker Glaceau as also coffee chain Eight'o Clock.
In an almost synchronised announcement, the two companies said that further statements would be made as and when appropriate as there was no certainty that a "final offer" would be made.
In its communique to the Bombay Stock Exchange, Tata Steel said the company has "made an indicative non-bidding offer to acquire 100 per cent equity in Corus Group Plc through a recommendatory offer route at 455 pence per share in cash."
Corus said discussions were on with Tata Steel.
Shares of Corus, which have seen a significant upsurge since the reports of Tatas' interest in the company first came, were trading at around £4.80 per share at the London Stock Exchange. Whereas, shares of the Indian entity closed up by 0.85 per cent at Rs 515.70 on the BSE.
Corus said that the announcement has been made with the consent of Tata Steel.
