Tata Steel's Acquisition of Corus (B)

Tata Steel's Acquisition of Corus (B)
Case Code: BSTR355
Case Length: 17 Pages
Period: 1997-2009
Pub Date: 2009
Teaching Note: Not Available
Price: Rs.300
Organization: Tata Steel Limited, Corus Plc.
Industry: Steel
Countries: UK, The Netherlands, India
Themes: Mergers and Acquisitions
Tata Steel's Acquisition of Corus (B)
Abstract Case Intro 1 Case Intro 2 Excerpts


The Global Steel Industry

The global steel industry had witnessed an unprecedented boom between the year 2002 and mid-2008. Several major steel companies across the world went on expanding capacities encouraged by the increasing demand led by the significant growth in the world economy and the rising price of the commodity (Refer to Exhibit II for Top Ten Steel producing companies in the World)...

Realizing Synergies after the Acquisition

Tata Steel planned to implement the integration process of Corus at two levels - strategic and functional. It had constituted teams for this purpose in April 2007. These two teams worked in areas like manufacturing, procurement, research and development (R&D), IT, finance, and capital projects to achieve the targeted synergies...

Impact of Global Slowdown

According to industry experts, the timing of the Tata Steel-Corus deal turned out to be wrong because of the global economic crisis. They opined that the deal was done at peak valuation as almost all asset classes started declining from late 2007 onward...

The Road Ahead

The global demand for steel remained weak even in the second quarter of financial year 2009-10. However, the prices of raw materials for making steel fell in the year 2009. The Benchmark price for coal fell to US$ 120 per tonne in 2009 from US$ 300 per tonne in 2008. The Benchmark price for iron ore fell to US$ 62 in 2009 from US$ 102 per tonne in 2008...


Exhibit I: Quarterly Performance of Tata Steel Group
Exhibit II: Top Ten Steel Producing Companies in the World
Exhibit III: Tata Steel Group - Income Statement (2007-09)
Exhibit IV: Tata Steel Group - Balance Sheet (2007-09)
Exhibit V: Tata Steel's Stock Price Chart (November 2007 - October 2009)

Buy this case study (Please select any one of the payment options)

Price: Rs.300
Price: Rs.300
PayPal (7 USD)

Custom Search