The process of acquisition concluded only after nine rounds of bidding against the other bidder for Corus — the Brazil based Companhia Siderurgica Nacional CSN. This acquisition was the biggest overseas acquisition by an Indian company. Tata Steel emerged as the fifth largest steel producer in the world after the acquisition. However, some financial experts claimed that the price paid by Tata Steel pence per share of Corus for the acquisition was too high.
Why the Tata-Corus merger was doomed to fail - videorip.info Business
In Tata Motors, an Indian automaker wanted to expand its product portfolio and diversify its market base. This acquisition gave the company access to premium cars, a chance to add two iconic luxury brands to its stable and a global footprint. It gave struggling Ford a chance to rid itself of two loss-making vehicle units. The deal was transformational. It catapulted Tata Motors from a commercial vehicle and small-car manufacturer to a global player with marquee brands in its portfolio.
Tata Steel's failure with Corus and Tata Motors' success with JLR: A tale of 2 buyouts in 9 charts
Abstract: Tata Steel, globally the 56th largest steel maker and second largest steel maker of India, bid for Anglo-Dutch steel maker, Corus, the ninth largest steel maker globally. The bid was initially perceived as an audacious business strategy, where a smaller company plans to acquire a bigger one. However, when it was perceived that Tata Steel almost bagged the deal, CSN, the largest steel maker of Brazil and 49th largest globally made a counter bid to acquire Corus. The merged entity would be globally the fifth largest steel maker with enviable market presence spread across the world. Apart from increasing capacity and market share, there are also strong synergies in financial, operational and production facilities.
It is the 12th-largest steel producing company in the world, with an annual crude steel capacity of Tata Steel has manufacturing operations The case of Tata Steel acquiring Corus throws up several interesting questions on emerging multinationals and traditional multinationals in the steel industry and particularly the complexities of the acquisition in the above context. What has been surprising in the above case is that how could a small steel maker, Tata Steel from a developing country like India buy up a large steel company, Corus PLC from the United Kingdom. Prior to the acquisition , Corus was four times bigger than Tata Steel.