The Board of Directors of Tata Steel on Friday approved the acquisition of Corus Group for $8.05 billion. The acquisition will create the world’s fifth-largest steel company.
Corus mainly manufactures semi-finished and finished carbon steel products.
The acquisition will be funded through Tata’s cash resources and loans and is subject to approval in both India and Great Britain.
Tata Steel will retain access to low cost raw materials and slab for the enlarged group, and gain exposure to high growth in emerging markets, while also gaining price stability in developed markets.
Manufacturing of slabs and primary steel will be completed in the low-cost facilities and high-end products in proximity to the client base will be manufactured in both Europe and India.