The Tatas are going to take over world’s 8th largest steelmaker in the biggest ever deal made by Corporate India.
- Deal valued at about $8 billion
- Corus 5 times bigger than Tata
- India’s biggest multi billion-dollar overseas corporate deal
- Deal to lift Tata from 65th to 5th in the global rankings
- The Tata-Corus combo is set to be the worlds 5th largest steel producer.
An alliance of this measure is just what the doctor ordered for both the companies. The steel industry needs consolidation, more so after the $38 billion Arcelor-Mittal deal earlier this year. Steelmakers across the world are now finding they need global alliances to remain competitive.
India Inc. seems to be on a global shopping free. This year only, Tata Tea bought a stake in the U.S. water manufacturer Glaceau for $677 million, and Tata Coffee acquired Eight O’Clock Coffee of the U.S. for $220 million. During the first half of 2006, Indian companies have closed on some 76 global takeovers worth $5.2 billion.
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