Merger

Acquisition

TATA STEEL
An Indian multinational steel-making company It has manufacturing operations in 26 countries Major competitors Products

Corus Steel
Formed on 6th Oct,1999 It is consist of four divisions

Core business of company

Wide variety of products & services

The deal
Corus steel has decided to acquire strategic partnership on 20th Sep,2006

It was announced on 2nd April, 2007

Continued ..
Initial motive behind the deal

Counter bid by CSN

The route taken by TATA Steel

Equity Capital from Tata Steel Ltd -$4.10 billion Long-term debt from consortium of banks - $6.14 billion Quasi Equity funding at Tata Steel Asia Singapore -$1.25 billion

Long term Capital Funding at Tata Steel Asia Singapore -$1.41 billion

Synergies
TATA STEEL 1. Lowest cost steel producer CORUS STEEL 1. Fighting to keep its production cost under control 2. Wanted to emerge their Asian markets 3. Specialized

2. Strong network in Asia

3. Specialized

4. Individual, credibility & excellence

4. Codes of ethics , integrity & others

TATA after acquisition

Formed a seven- member integration committee

The deal made Tata Steel the worlds fifth-largest steel producer

TATA after acquisition

Internationalization of the Indian corporate sector has reached a new high with this landmark deal.

The day after acquisition, Tata Steels share fell by10.7%

TATA CORUS- crash, crisis & recovery effect

Crash

Crisis

Recovery

Strength

Threat

TATACORUS Acquisition

Weakness

Opportunity

I believe this will be the first step in showing that Indian industry can in fact Step outside the shores of India in an international marketplace and acquit itself as a global player
-RATAN TATA