Tata Corus

Published: 2021-06-29 07:04:37
essay essay

Category: History Other

Type of paper: Essay

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Hey! We can write a custom essay for you.

All possible types of assignments. Written by academics

The Deal
The deal (between Tata & Corus) was officially announced on April 2nd, 2007 at a price
of 608 pence per ordinary share in cash. This deal is a 100% acquisition and the new
entity will be run by one of Tata's steel subsidiaries. As stated by Tata, the initial motive
behind the completion of the deal was not Corus' revenue size, but rather its market
value. Even though Corus is larger in size compared to Tata, the company was valued
less than Tata (at approximately $6 billion) at the time when the deal negotiations started.
But from Corus' point of view, as the management has stated that the basic reason for
supporting this deal were the expected synergies between the two entities. Corus has
supported the Tata acquisition due to different motives. However, with the Tata
acquisition Corus has gained a great and profitable opportunity to make an exit as the
company has been looking out for a potential buyer for quite some time.

The total value of this acquisition amounted to £6.2 billion (US$12 billion). Tata Steel

Warning! This essay is not original. Get 100% unique essay within 45 seconds!


We can write your paper just for 11.99$

i want to copy...

This essay has been submitted by a student and contain not unique content

People also read