Corus Group confirmed Oct. 17 it has received a takeover approach from India's biggest private steel firm Tata Steel that values the Anglo-Dutch steelmaker at 4.05 billion pounds (US$ 7.56 billion).
"The company is in discussions with the board and management of Corus Group and it has made an indicative non-binding offer to acquire 100% equity in Corus Group through a recommendatory offer route at 455 pence per share in cash," Tata Steel said in a statement. "However, there is no certainty that a final offer would be made and further announcements would be made as appropriate," it added.
Tata Steel confirmed that it had informed the Mumbai Stock Exchange of the takeover move.
The combined group would be among the top ten steel industry players in the world in terms of output. Corus, spawned by the 1999 merger of Dutch firm Hoogovens and British Steel, is the world's ninth largest steel maker, producing around 18.0 million tons per year. Tata Steel produced more than five million tons in the year to March 2006 and aims to reach 7.5 million tons by 2008.
Copyright Agence France-Presse, 2006
