Tata Steel and Corus will set up an integration committee
to oversee the merger of the two, after which the Anglo-Dutch
firm would be delisted, Tata Sons chairman Ratan Tata
integration, both Tata Steel and Corus would virtually
be a single company, he said.
Steel is not at the present moment planning a listing
in an overseas market. I think in terms of the present
schedule, we should be the owners of Corus stock sometime
in early April if the shareholders pass or accept our
bid in a meeting that is schedule to take place next Wednesday,"
on the sidelines of the centenary celebrations of Tata
Steel, Tata said the committee would be formed soon and
would comprise representatives of both Corus and Tata
Tata and Corus chairman James Leng were in Jamshedpur
to mark the Founder''s Day celebration of Tata Steel.
at the centenary celebrations of Tata Steel, managing
director B Muthuraman also said Corus would be delisted
from April this year.
will be an unlisted company. It will be a company, which
will be held by one of Tata Steel''s subsidiaries on a
100-per cent basis. So it will become an unlisted company
from that time onwards, which is the first week of April,"
also said, "The acquisition of Corus is unique in
the sense that it is a company that has a scale of 19
million tonnes currently; has a presence in Europe with
a brand name and more importantly, a shared value system
between the managements.
"We have always had a view that we will not engage
in a hostile takeover. In the case of Corus, the offer
we made to the Corus management was the offer that was
contingent on the board and the management was unanimously
supporting our bid and recommending this to the shareholders.
So this is a joining of hands in mutual concept and therefore
it was attractive to us.
has elevated us to be the fifth largest company, that''s
secondary. What we wanted to do is to synergistically
grow our company to global scale," he noted.
paid a higher price than we had expected. We did not reach
the level of cut-off that we had internally set ourselves.
But it is still within the realm of a price that we believe
we can justify and looking back in time will be a union
which we believe that history will say that we did the
right thing even though at that time it seems high price,"
think the celebration, if any, ought to come when we prove
to our critics that we achieve this without hurting the
stakeholders of Tata Steel in anyway, but enhancing great
value to them in the course of time," added Tata.
pointed out that the merger was based on synergies between
Tata Steel and Corus.
we would like to do is to ensure that all other synergies
are extracted and maximised as quickly as possible and
there are synergies in manufacturing, in search and development
and in marketing area."
fact, the Corus team and ourselves have sat together and
have worked out the synergies that we would be able to
create over two three years time and the figure
of $350 million I mentioned in the last conference came
out of that," he added.