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Landmark agreement results in a unique global partnership

History was made on the 2nd of April 2007 when the takeover of Corus Group by Tata Steel of India was completed.

Background

On 20th October 2006 Tata Steel submitted a proposal to acquire Corus at 455 pence per Corus share, which was viewed favourably by the Corus board. Three months later following a counter offer from Brazil’s CSN and an auction was conducted to decide who would acquire Corus, Tata Steel was confirmed as the successful bidder at 608 pence per Corus share, valuing Corus Group at ₤6.7 billion.

The combined resources of Corus and Tata create the world’s 5th largest steel producer with a total annual steel output of 23.5 million tonnes, and the 2nd most global steel producer with a combined presence in 45 countries.

Who is Tata?

Tata Steel is one of the lowest-cost and most profitable steel companies in the world. Tata Steel is part of the Tata Group, one of India’s best known and respected industrial companies. It is India’s largest private sector employer (235,000 employees) with operations spreading across 6 continents, exporting goods and services to 140 nations.

Tata Group’s operations encompass seven business sectors: Engineering, Energy, Materials (which includes Tata Steel), Chemicals, Consumer Products, Services, and Communications & Information Systems.

Corus and Tata synergies?

Corus and Tata Steel are a powerful combination, steeped in steelmaking history, with a compelling vision for the future. Capacity is anticipated to grow over the next 5 or 6 years from 23.5 to 40 million tonnes, repositioning the organisation as the 2nd largest steel producer in the world. We have moved closer to becoming a truly global player in the ever changing steel industry.

Corus and Tata are value-driven organisations sharing a mutual commitment to quality, cost competitiveness, social & environmental responsibility, and continuous improvement.

The deal has created an organisation with low-cost steel production on two continents, significant expertise in leading-edge steel making technology, and a global distribution network.

What does this mean for Corus in New Zealand?

We will continue to be Corus. Our name, company identity, and brand will be retained, at least for the foreseeable future. There will be significant business growth opportunities for Corus both in New Zealand and Australia, which will emanate from the synergies of this new global partnership.