Tata the fifth largest steel firm now

New Delhi: It’s a deal that will give India’s breakthrough into the growing steel industry making Tata Steel the fifth-biggest steelmaker in the world.

Tata won a hotly contested bid to acquire Anglo-Dutch steelmaker Corus Group with a 608 pence a share offer, beating the only other bidder Companhia Siderurgica Nacional PLC (CSN) of Brazil in an auction set up by the UK Takeover Panel.

The successful $11.3 billion takeover of its much bigger rival Corus Group is the latest in a series of acquisitions abroad executed by India's largest and one of the oldest corporate groups.

What does it mean for corporates and 'brand India'?

Jitesh Gadhia, Head of corporate finance at ABN-Amro, who were one of the advisors to Tatas, says that Corus will be a valuable asset for Tata Steel.

“CSN had earlier announced a deal for Corus back in 2002-03. In a way this shouldn’t surprise people. This indeed validates the fact that Corus is a very strategic asset in the rapidly consolidating steel industry,” said the corporate finance head.

“If you look at the European steel market in global terms, Corus is one of the largest assets in the world. It’s attractive to see the Dutch part of Corus and its steel plant coming under Tata Steel. It is one of the most efficient steel producers in Europe. UK’s part of Corus enjoys some of highest market share in some important niche positions. I think its got about 50 per cent market share in the UK. It clearly is a very attractive asset,” he added.

Take a look at the Tata’s previous acquisitions:

*Tata Tea acquired 30 per cent stake in US' Glaceau (Energy Brands) in August 2006 for $677 million.

* Tata Tea bought 33 per cent share in South African tea company Joekels through its subsidiary Tetley Group

* Tata Tea acquired US-based Eight'O clock coffee company for $220 million (Rs 1,050 cr) in June 2006

* Tata Chemicals picked 63.5 per cent stake in UK's Brunner Mond Group for Rs 508 crore in December 2005

Tata Steel acquired Millennium Steel of Thailand in December 2005 for $404 million (Rs 1,800 crore)

* Tata Consultancy Services bought out Chilean BPO firm Comicorn for $23 million (Rs 107.02 crore) in November 2005

* TCS acquired Sydney-based FNS in October 2005

* Tata Technologies purchased INCAT International, UK in October 2005 for $91 million (Rs 411 crore)

* Tata Tea acquired Good Earth Corp in October 2005 for around $32 million.

* Tata Auto Comp (TACO) took over German auto components maker Wundsch Weidinger

* Tata Steel bought Singapore's NatSteel in August 2004 for over Rs 1,300 crore.