4. Tata Corus
• Tata Steel Established in 1907
• Corus was formed from the merger of
British Steel plc (1967,UK) and Koninklijke
Hoogovens (1918,Netherlands) on the 6th
October 1999
• Tata steel Acquired Corus for 608 pence
per share amounting to $12.1 billion
5. Consolidate or Perish…
• The suppliers to and buyers from steel
makers are well consolidated
• The de-integrated method of Steel-Making
• Cost reduction drive by Anglo-Dutch firm.
• “One had cheap iron ore and a low cost
manufacturing base, the other the
technology.”
• Corus wanted higher margins, Tata
wanted lucrative markets.
6. • Corus makes nearly four times more steel
than tata steel. This deal will increase Tata
steel capacity exponentially
• Long term synergies
• Leverage R&D for Tata Steel greenfield
projects in orissa, chhattisgarh, jharkand
• Cost savings of $350 million a year in 3
years time.
7. • The product mix of corus
• Gives it a wider customer base and
enhanced product portfolio
• Significant cost savings by exporting
cheaper inputs (slabs & billets) inputs from
india that will be processed in corus
• The combine entity becomes the 5 th largest
producer in the world and the 2 nd in Europe
