Tata Acquires Corus
INVESTMENT BANKING
acquisition | tata acquires corus |
SUBMITTED TO
MAAM HUMA AYUB
SUBMITTED BY
MUHAMMAD ARSLAN
SEHRISH MUSHTAQ
DURDANA IRSHAD
AGHA NAWAZISH
ZUHAIB GUL
BBA- 8 A-C
DATE 10-01-2011
ACKNOWLEDGEMENT
First and foremost we are thankful to Allah for giving us the mind to think, heart to feel and strength to complete this report.
We would also like to thank our course instructor, Ma’am Huma Ayub for her advice and suggestions to this report. Without the assistance of her, it would have been difficult and stupendous for our group with meager resources at its disposal to accomplish it
TABLE OF CONTENTS
INTRODUCTION 1
TATA STEEL 2 EXPANSION PROGRAM 2 MODERNIZATION PROGRAM 3 CORPORATE SOCIAL RESPONSIBILITY 3 SWOT ANALYSIS 4 POLICIES OF TATA STEEL 5
CORUS COMPANY 6 SWOT ANALYSIS 7
REASONS BEHIIND THE ACQUISITION 9 TATA 9 CORUS 10
SYNERGIES BETWEEN TATA STEEL AND CORUS 11
ACQUISITION DEAL 12
ADVISORS TO THIS DEAL 13 TATA ADVISORS 13 CORUS ADVISORS 13
VALUING THE ACQUISITION 14
FINANCING THE DEAL 14
WHY CASH DEAL? 15
CRITICAL ANALYSIS 16 POST ACQUISITION BENEFITS 16 ANALYZING THE CORPORATE ADVISORS 17 ANALYZING THE DEAL AND ITS EFFECTS ON THE COMPANY 17 POST ACQUSITION SCENARIO 18
CONCLUSION 19
TABLE OF FIGURES
Figure 1 Overview Of Acquirer i Figure 2 Means for Financing the Deal i Figure 3 Sources of Equity ii Figure 4 Total Sources Identified For Financing iii Figure 5 Post Acquisition Benefits iii
INTRODUCTION
“There are not many opportunities for producers in emerging low-cost markets to gain access to the markets of Europe other than by acquiring a company like Corus,”
John Quigley (Editor, Industry Publication Steel week)
Tata Steel (part of the Tata Group based in India) acquired the Anglo-Dutch steel firm Corus after a four month bidding war with Brazil’s CSN (Companhia Siderurgica Nacional SA) for US$12 billion—this was the biggest acquisition by an
acquisition | tata acquires corus |
SUBMITTED TO
MAAM HUMA AYUB
SUBMITTED BY
MUHAMMAD ARSLAN
SEHRISH MUSHTAQ
DURDANA IRSHAD
AGHA NAWAZISH
ZUHAIB GUL
BBA- 8 A-C
DATE 10-01-2011
ACKNOWLEDGEMENT
First and foremost we are thankful to Allah for giving us the mind to think, heart to feel and strength to complete this report.
We would also like to thank our course instructor, Ma’am Huma Ayub for her advice and suggestions to this report. Without the assistance of her, it would have been difficult and stupendous for our group with meager resources at its disposal to accomplish it
TABLE OF CONTENTS
INTRODUCTION 1
TATA STEEL 2 EXPANSION PROGRAM 2 MODERNIZATION PROGRAM 3 CORPORATE SOCIAL RESPONSIBILITY 3 SWOT ANALYSIS 4 POLICIES OF TATA STEEL 5
CORUS COMPANY 6 SWOT ANALYSIS 7
REASONS BEHIIND THE ACQUISITION 9 TATA 9 CORUS 10
SYNERGIES BETWEEN TATA STEEL AND CORUS 11
ACQUISITION DEAL 12
ADVISORS TO THIS DEAL 13 TATA ADVISORS 13 CORUS ADVISORS 13
VALUING THE ACQUISITION 14
FINANCING THE DEAL 14
WHY CASH DEAL? 15
CRITICAL ANALYSIS 16 POST ACQUISITION BENEFITS 16 ANALYZING THE CORPORATE ADVISORS 17 ANALYZING THE DEAL AND ITS EFFECTS ON THE COMPANY 17 POST ACQUSITION SCENARIO 18
CONCLUSION 19
TABLE OF FIGURES
Figure 1 Overview Of Acquirer i Figure 2 Means for Financing the Deal i Figure 3 Sources of Equity ii Figure 4 Total Sources Identified For Financing iii Figure 5 Post Acquisition Benefits iii
INTRODUCTION
“There are not many opportunities for producers in emerging low-cost markets to gain access to the markets of Europe other than by acquiring a company like Corus,”
John Quigley (Editor, Industry Publication Steel week)
Tata Steel (part of the Tata Group based in India) acquired the Anglo-Dutch steel firm Corus after a four month bidding war with Brazil’s CSN (Companhia Siderurgica Nacional SA) for US$12 billion—this was the biggest acquisition by an