Tata Steel Ltd, on 22 December 2006, won approval
from the European Commission to buy Anglo-Dutch firm Corus Group, paving the way
for the creation of the world's fifth-largest steelmaker.
The deal, India's largest ever foreign takeover
and worth 4.3 billion pounds, extends a wave of consolidation in the fragmented
steel sector and follows Mittal Steel's $32 billion acquisition of Arcelor. The
deal gives Tata, access to Corus' plants in Britain, the Netherlands, France and
Belgium and propels it to the world No.5 position from 56 currently. The deal,
which gives the combined group a 2005 pro forma steel production of 23.5 million
tonnes, values Corus' output at $440 per tonne compared to $690 per tonne for
Mittal's acquisition of Arcelor.