Tata Steel completes Corus acquisition

Mumbai: Tata Steel has announced the completion of its £6.2 billion ($12 billion) acquisition of Corus Group plc at a price of 608 pence per ordinary share in cash.

The combined entity, with a crude steel production capacity of 27 million tones, will be the world''s fifth largest steel producer with 84,000 employees across four continents.

Tata Steel is a vertically integrated steel producer and one of the world''s most profitable steel companies, with an established and growing presence in India, Southeast Asia and the Pacific-rim countries. Corus is Europe''s second largest steel producer, with a high value-added product range and strong positions in automotive, construction and packaging.

The combine will create the world''s second most global steel producer with a combined presence in 45 countries.

"The completion of this acquisition of Corus by Tata Steel is a major step forward in the company''s global strategy and represents an exciting future for both businesses.

Corus'' top management will remain with the enlarged group and the bringing together of both management teams is an expression of the strong confidence and trust that exists between the two organisations. Together we are a well balanced company, strategically well placed to compete at the leading edge of a rapidly changing global steel industry," Ratan Tata, chairman of Tata Steel and Corus, said.

"With Tata Steel, we have delivered both and the directors, senior management and other employees of Corus will see today as the beginning of an exciting new era. The Corus and Tata Steel combination will enable us to build on complementary skills in global markets. I am very much looking forward to working with Mr. Ratan Tata and the boards and directors in both companies," Jim Leng, retiring chairman of Corus, said.

The completion of the transaction is pursuant to the scheme of arrangement of the Tata Steel scheme being declared effective by the High Court of Justice in England and Wales.