Indian firm Tata Steel has won a bidding war to take over Anglo-Dutch steel company Corus.
Tata beat off Brazilian rival CSN in the takeover. The acquisition makes Tata the fifth largest steel manufacturer worldwide, capable of producing about 24 million tonnes a year.
Tata won the bid after offering US $1.19 (INR52.4) per share, valuing Corus at $11.3 billion. The eight-hour auction, consisting of nine rounds of bidding, was the culmination of a three-month battle.
Corus employs 47,300 people worldwide, including 24,000 in the UK at plants at Port Talbot, Scunthorpe and Rotherham. Last year Corus was the ninth largest steel producer in the world with 18.2 million tonnes of output and a turnover of $19.9 billion.
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.
The Tata Group, which owns Tetley tea and Daewoo cars, has operations in more than 50 countries.
The battle for Corus reflects the current high price of steel. Booming construction industries worldwide are fuelling the demand for steel and driving up prices, while flourishing economies in countries such as China and India are placing high demand on steel supplies.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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