£6.2bn acquisition of Corus completed

Published:  18 December, 2007

Tata Steel has completed its £6.2 billion (US$12 billion) acquisition of Corus Group plc (Corus) at a price of 608 pence per ordinary share in cash.

The enlarged company will have a pro forma crude steel production of 27 million tonnes in 2007 and will be the world's fifth largest steel producer with 84,000 employees across four continents.

The combination of Tata Steel, a vertically integrated steel producer and one of the world"s most profitable steel companies, with an established and growing  presence  in India, South East Asia and the Pacific-rim countries, and  Corus, Europe’s second largest steel producer, with a high value added product range  and  strong  positions  in  automotive,  construction  and packaging, will create the world’s second most global steel producer with a combined presence in 45 countries.

Commenting, Mr Ratan Tata, chairman of Tata Steel and Corus, said: "The completion of this acquisition of Corus by Tata Steel is a major step forward in the Company’s global strategy and represents an exciting future for both businesses. I firmly believe that both Tata Steel and Corus, two companies with long, proud histories, share a common business culture and a global vision for the business.

Corus’ top management will remain with the enlarged Group. Ratan Tata believes the bringing together of both management teams is an expression of the strong confidence and trust that exists between the two organizations.

Jim Leng, retiring chairman of Corus, said: "Corus had twin objectives from the outset.  One was to secure the best value for our shareholders and the other was to ensure the best strategic future for the business. With Tata Steel, we have delivered both and the directors, senior management and other employees of Corus will see today as the beginning of an exciting new era. The Corus and Tata Steel combination will enable us to build on complementary skills in global markets. I am very much looking forward to working with Mr Ratan Tata and the Boards and directors in both companies.”