- Title: INDIA/FILE: India cheers Tata's takeover of Anglo Dutch steelmaker Corus
- Date: 31st January 2007
- Summary: (W2) NEW DELHI, INDIA (JANUARY 31, 2007) (ANI) RAM VILAS PASWAN, INDIAN STEEL MINISTER, SITTING (SOUNDBITE) (Hindi) RAM VILAS PASWAN SAYING: "This is an achievement for both -- for Tata Steel as well as the country's steel sector. It's good news for both. We also want our steel sector to take strides in the global market. Ever since the UPA government has come into power, the steel sector is progressing well. Recently, Arcelor was bought by Mittal and now Tata has acquired Corus. So, the target that we have kept that steel production should reach 110 million tonnes by 2020 - I feel that our target can safely be increased. So this comes as good news for Tata, the steel sector and the country as a whole."
- Embargoed: 15th February 2007 15:13
- Topics: International Relations,Industry
- Reuters ID: LVA3KQXBSPCA0OMKRHUTDMTHPJ64
- Aspect Ratio: 4:3
- Story Text: India's Tata Steel is set to become the world's fifth-biggest steel-maker after winning a battle for Anglo-Dutch steel-maker Corus Group with a 6.2 billion pounds ($12 billion USD) offer.
The deal, India's biggest ever foreign take-over, is expected to fuel a new wave of consolidation in the fragmented steel sector after Mittal Steel acquired rival Arcelor for $32 billion USD last year.
In India's capital New Delhi, federal Steel Minister Ram Vilas Paswan expressed satisfaction with the deal.
"This is an achievement for both -- for Tata Steel as well as the country's steel sector. It's good news for both. We also want our steel sector to take strides in the global market.," Paswan told reporters on Wednesday (January 31).
Britain's Takeover Panel said after an auction, Tata Steel had agreed to offer Corus investors 608 pence per share in cash, a third more than its original offer and topping a final bid of 603 pence from Brazilian Companhia Siderurgica Nacional (CSN).
Both offers were at the top end of what analysts had thought possible and would now be put to Corus investors, who have no reason not to accept the higher price.
The acquisition will be funded by more debt and a cash contribution by Tata Steel, the company said in a statement.
Shares in Tata Steel fell as much as 9 percent as investors felt it was paying too high a price and the purchase could strain the finances at least in the short term.
Ratan Tata has transformed the once-staid Tata group since taking over as chairman in 1991. He has cut the number of companies in the group from over 300, and acquired new businesses with growth potential.
Tata Steel has spent more than $400 million USD in recent years to buy Singapore's NatSteel and Thailand's Millennium Steel and other group companies have also made acquisitions outside India.
- Copyright Holder: ANI (India)
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