Mumbai: Tata Steel has offered to acquire Anglo-Dutch steelmaker Corus Group Plc, UK's largest, for $7.57 billion (£4.04 billion / Rs 34,541.91 crore) in what would be the largest overseas takeover by an Indian company. Tatas offered to pay the London-based company 455 pence a share in cash, Corus said in a 'regulatory news service' statement.

Corus shares were trading at 477.50 pence in late morning trade in London, valuing the company at £4.24 billion.

Corus said ``discussions are taking place,'' adding there can be ``no certainty that an offer will be made.''

It is merger time for steelmakers who are combining to increase clients and supplier bases, taking advantage of globalisation and a growing worldwide demand for steel.

A merger with Corus would give Tata Steel a foothold in Europe, while Corus would gain access to cheap iron ore. It would also catapult Tata Steel from its 56th position to No 6 in world rankings.

Tata Steel, meanwhile, is expected to see a 7.3 per cent rise in net profit at Rs1,120 crore ($247 million) for the quarter ended September 30, reports quoting analyst sources said.

Net sales are seen rising 10.2 per cent to Rs4,260 crore on increased production. Tata Steel's output was up 10 per cent in January-September this year from a year earlier, despite a temporary closure of a blast furnace at its plant in Jamshedpur.

Tata Steel, a part of the Tata Group, aims to increase annual output nearly seven times to 35- million tonnes in the next 10-15 years, while public sector steel producer SAIL has expansion projects worth more than $75 million in the pipeline.

Earlier, in July the Tatas increased stake in Tata Steel to ward off possible hostile takeover bids, after Mittal Steel's $31-billion takeover of Europe's Arcelor.