Tata Corus Acquisition
Case Study
Tata Steel – Corus Group Plc Acquisition
Group Report
(Submitted towards Group assignment under Corporate strategy)
eMEP10/ePGP03
IIM, Kozhikode.
Submitted By:
Table of Contents
1. Introduction 3
2. Tata Group 3
3. Tata Steel 4
4. SWOT Analysis of Tata steel 5
5. Corus Group Plc. 5
6. SWOT Analysis of Corus 6
7. Rationale for Acquisition 6
8. About the deal 7
9. Justification of Deal 7
10. Tata Steel financial position after the deal 8
11. Tata Corus: Synergies between the two companies 8
12. Conclusion 9
Introduction
Tata Steel purchased a 100% stake in the Anglo-Dutch steelmaker Corus Group on January 30, 2007. The acquisition is priced at 608 pence per share in an all cash deal, cumulatively valued at USD 12.04 Billion. The deal is the largest Indian takeover of a foreign company and made Tata Steel the world's fifth-largest steel group.
Tata Group
The Tata Group is an Indian multinational conglomerate company headquartered in the Bombay House in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India. It has interests in chemicals, steel, automobiles, information technology, communication, power, beverages, and hospitality. The Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. The Tata Group has adopted unrelated diversification comprising 114 companies and subsidiaries in eight business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts. Companies which form a major part of the group include Tata Steel (including Tata Steel Europe), Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services, Tata Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata Power, Tata Communications, Tata Teleservices and the Taj Hotels.
Tata
Tata Steel – Corus Group Plc Acquisition
Group Report
(Submitted towards Group assignment under Corporate strategy)
eMEP10/ePGP03
IIM, Kozhikode.
Submitted By:
Table of Contents
1. Introduction 3
2. Tata Group 3
3. Tata Steel 4
4. SWOT Analysis of Tata steel 5
5. Corus Group Plc. 5
6. SWOT Analysis of Corus 6
7. Rationale for Acquisition 6
8. About the deal 7
9. Justification of Deal 7
10. Tata Steel financial position after the deal 8
11. Tata Corus: Synergies between the two companies 8
12. Conclusion 9
Introduction
Tata Steel purchased a 100% stake in the Anglo-Dutch steelmaker Corus Group on January 30, 2007. The acquisition is priced at 608 pence per share in an all cash deal, cumulatively valued at USD 12.04 Billion. The deal is the largest Indian takeover of a foreign company and made Tata Steel the world's fifth-largest steel group.
Tata Group
The Tata Group is an Indian multinational conglomerate company headquartered in the Bombay House in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India. It has interests in chemicals, steel, automobiles, information technology, communication, power, beverages, and hospitality. The Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. The Tata Group has adopted unrelated diversification comprising 114 companies and subsidiaries in eight business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts. Companies which form a major part of the group include Tata Steel (including Tata Steel Europe), Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services, Tata Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata Power, Tata Communications, Tata Teleservices and the Taj Hotels.
Tata