Update: Tata Steel bids $7.57 billion for Corus

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.