Tata Steel acquired Corus, a European steel producer, in 2007 in a horizontal acquisition. Tata Steel is one of the world's largest steel producers with operations in 26 countries, while Corus was Europe's second largest steel producer. There were benefits for both companies - Tata Steel gained access to Corus' high-value steel products and European markets, while Corus was able to pay off debts and gain access to Tata Steel's lower cost raw materials in India. The acquisition was considered timely and complementary due to the companies' differences in products, markets, and resources. Following the acquisition, Tata Steel rose to become the 5th largest steel producer in the world, with production capacity increasing over seven times to

1. TATA STEEL & CORUS: A CASE OF
ACQUISITION

2. AQCUISITION
When one company takes over a company and clearly establishes itself to be the new
owner
HORIZONTAL ACQUISITION
The type of acquisition that happened within Tata Steel & Corus.
COMPANY PROFILE TATA
Established in 1907, Tata Steel is among the top ten global steel companies.It is now one
of the world's most geographically-diversified steel producers,withoperations in 26
countries and a commercial presence in over 50 countries.The Tata Steel Group, with a
turnover of US$ 40.13 billion in FY 2016- 2017, has over 1Lakh employees across five
continents and is the FIRST in Fortune 500 indian company.
COMPANY PROFILE CORUS
Corus was formed on 6th October 1999.It is Europe’s second largest steel producer with a
production of 18.2 million tones and revenue of 9.2 billion.Major manufacturing sites in
UK,Netherlands,Germany,France and Belgium & sales/offices centers in over 40
countries.

3. REASONS FOR TATA STEEL TO BID
1. To tap European mature market.
2. Cost of acquisition is lower than setting up of green field plant and marketing and
distribution channel.
3. TATA manufactures low value, long and flat steel products while Corus produced high value
stripped products.
REASONS FOR CORUS TO BE SOLD
1. A chance to bail out of debt and financial crisis. Total debt of CORUS was 1.6 bn GBP.
2. Access to cheap high quality iron ore from India.
3. Corus needed supply of raw material at lower cost.
VIEW ON THE DEAL
1. TATA steel acquisition of CORUS was a bold and smart move. Complementarities in scale,
market geography, financials, technology and raw materials offered a strong rationale for
the deal.
2. The acquisition of CORUS has been timely done. Given the rising momentum of
consolidation in the industry and rising valuations of steel companies, had TATA steel not
acted when it did, the opportunity could have been lost forever.

4. TATAS SALES BREAK UP AFTER AQUISITION

5. Acquisition– Success or Failure?
A Huge Success
1. TATA Steel Group rose to 5th position from 56th & now 7th largest in
the world.
2. The production capacity increased from 4 million tones to 28 million
tones by 2011

6. THANK YOU
By
Arko provho Mitra