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India's Tata

wins race for Corus

 

The deal will affect thousands of Corus workers in Europe.Indian firm Tata Steel has won the battle to take over Anglo-Dutch steelmaker Corus.Tata's bid for the European steelmaker, which was created from the merger of British Steel and Hoogovens, beat that of its Brazilian rival CSN. 

<font face="arial, geneva, helvetica" size="2">Britain's Takeover Panel said Tata had won after offering 608p per share, valuing Corus at £5.75bn ($11.3bn).&nbsp;</font>

<font face="arial, geneva, helvetica" size="2">Corus employs 47,300 people worldwide, including 24,000 in the UK at plants at Port Talbot, Scunthorpe and Rotherham.&nbsp;</font>

<font face="arial, geneva, helvetica" size="2">Tata, which is based in Mumbai (Bombay), previously said its takeover would not lead to job losses in the first phase. &nbsp;</font>

<font face="arial, geneva, helvetica" size="2">The takeover will create the world's fifth-largest steel group. &nbsp;</font>

<font face="arial, geneva, helvetica" size="2">'Big player'&nbsp;</font>

<font face="arial, geneva, helvetica" size="2">Tata Steel director JJ Irani said the acquisition of Corus would help "improve our negotiating power in the global steel market." <br>He told India's NDTV television: "From a small player, we will now become a big player in the world market."&nbsp;</font>

<font face="arial, geneva, helvetica" size="2">Yet shares in Tata Steel fell 6% in morning trading in Mumbai, as investors worried about the deal's short term financial impact on the Indian firm.</font>

<font face="arial, geneva, helvetica" size="2">Meanwhile, Corus shares were up 7% in early Wednesday trading in London.&nbsp;</font>

<font face="arial, geneva, helvetica" size="2">India's Commerce and Industry Minister Kamal Nath welcomed the deal and said: "It is a two-way street now. Not only India is seeking foreign investment, but Indian</font>

<font face="arial, geneva, helvetica" size="2">companies are emerging investors in other countries." The two-way battle for the firm began in October when Tata tabled a £4.1bn bid for</font>

<font face="arial, geneva, helvetica" size="2">the group and, in December, the Corus board recommended a revised £4.7bn offer from Tata.&nbsp;</font>

<font face="arial, geneva, helvetica" size="2">But, just hours later the board confirmed it had approved a £4.9bn, offer from Rio de Janeiro-based CSN.&nbsp;</font>

<font face="arial, geneva, helvetica" size="2">Tata eventually outbid its Brazilian rivals.&nbsp;</font>

<font face="arial, geneva, helvetica" size="2">Last year Corus was the ninth largest steel producer in the world with 18.2 million tonnes of output. It banked pre-tax profits of £580m on turnover of £10.14bn.</font>

<font face="arial, geneva, helvetica" size="2">Tata Steel, part of the Indian conglomerate Tata Group, was last year ranked 56th in the list of steelmakers around the world with output of 5.3 million tonnes.&nbsp;</font>

<font face="arial, geneva, helvetica" size="2">The Tata Group - which owns Tetley tea and Daewoo cars - has operations in more than 50 countries.</font>

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