Tata Steel's Acquisition of Corus

Commenting on the deal, Sajjan Jindal, Managing Director, Jindal South West Steel said, "The price paid is expensive...all steel companies may get re-rated now but it's a good deal for the industry."⁶ Despite the worries of the deal being expensive for Tata Steel, industry experts were optimistic that the deal would enhance India's position in the global steel industry with the world's largest⁷ and fifth largest steel producers having roots in the country. Stressing on the synergies that could arise from this acquisition, Phanish Puram, Professor of Strategic and International Management, London Business School said, "The Tata-Corus deal is different because it links low-cost Indian production and raw materials and growth markets to high-margin markets and high technology in the West.

Tata Steel

Tata Steel is a part of the Tata Group, one of the largest diversified business conglomerates in India. Tata Group companies generated revenues of Rs. 967,229 million in the financial year 2005-06.

The group's market capitalization was US$ 63 billion as of July 2007 (only 28 of the 96 Tata Group companies were publicly listed). In 1907, Jamshedji Tata established Tata Steel at Sakchi in West Bengal. The site had a good supply of iron ore and water...