'It might not have a direct impact on the domestic steel industry but will improve India's position in the global market.'
SeverStal, CSN and ThyssenKrupp may be likely bidders
The $12.1 billion Corus acquisition-the biggest global acquisition made by an Indian company-ended up as a millstone around Tata Steel's neck, points out Indrajit Gupta.
Indian conglomerate Tata Group's $12 billion takeover of Anglo-Dutch giant Corus Group Plc reached its culmination with the deal coming into effect from making Tata Steel the world's fifth largest steel firm.
With Euro zone problems, it continues to weather rough times, with 900 jobs cut as latest decision.
The High Court in Britain has approved the $12 billion take over of Anglo- Dutch steel maker Corus Group by the Indian Steel giant Tata Steel. The deal is expected to be completed by early next week.
India Inc on Wednesday welcomed Tata Steel's acquisition of Anglo-Dutch steel maker Corus while expressing concern that the deal might re-rate the entire steel industry, making steel companies over-valued.
Bankers and brokers allied to Brazil's Companhia Siderurgica Nacional scaling up their combined stake in the company to over 19 per cent.
The Anglo-Dutch merger was meant to revive the ailing British Steel which had incurred a net loss of 81 million in the year ended March 31, 1999
Higher valuation of Corus may put pressure on Tatas' financials.
Tata Steel's $12-billion takeover of Britain's largest steel maker Corus Group Plc in early 2007 not only catapulted the Indian conglomerate to the global corporate centre-stage, but also gave other domestic companies the self-belief of taking on multinationals much bigger in size.
"Tata Steel now anticipates that the effective date of the scheme of arrangement will be around the end of March or the first week of April 2007," it added.
Meet Arunkumar Ramanlal Gandhi. The head of the M&A activities in the Tata Group, who called up Tata to convey Tata Steel's victory.
The acquisition of Anglo-Dutch steel company Corus by Tata Steel is expected to be completed by middle of January 2007.
The European Union has said the recent big ticket merger and acquisitions between Indian and European companies including Tata-Corus and Vodafone-Hutch would pave the way for greater economic integration
The acquisition is scheduled to take effect from April 2
The British government has said it was "not prepared" to accept an announcement by Tata Steel and its European subsidiary, Corus, that there seemed no option but to indefinitely suspend operations at one of the latter's factories in north-east England, which means loss of around 2,000 jobs.
Overseas expansion by Indian companies can leverage India's comparative advantage.
Tata Steel may opt for a rights issue to raise funds to finance its $13.13 billion purchase of the Corus group
Corus Group chairman Jim Leng will receive an addition payment of pound 750,000 (Rs 6.41 crore) for turning around the Anglo-Dutch steel maker in the past two years.
The reasons may not appear compelling, but an alliance with Dow Chemical could help RIL. Here are the reasons.
With the general consensus remaining negative on the metal space, should you invest in metals now?
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