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20/10/2006
Tata agree £4.3bn deal with Corus
Indian group Tata Steel has confirmed it has agreed a £4.3bn takeover from Anglo-Dutch steel company Corus.
Tata said the acquisition is 'strategically compelling' and would create the fifth largest steel producer with pro forma crude steel output of 23.5 mln tonnes in 2005.
Commenting on the announcement, Ratan Tata, Chairman of Tata Steel, said: "This proposed acquisition represents a defining moment for Tata Steel and is entirely consistent with our strategy of growth through international expansion.
"Corus and Tata Steel are companies with long, proud histories. We have compatible cultures of commitment to stakeholders and complementary strengths in technology, efficiency, product mix and geographical spread.
"Together we will be even better equipped to remain at the leading edge of the fast changing steel industry."
Tata Steel has held constructive and satisfactory discussions with Corus' two main UK pension schemes and has offered upfront the IAS deficit on the Corus Engineering Steels Pension Scheme by paying £126m into it.
It has also offered to increase the contribution rate on the British Steel Pension Scheme from 10 per cent to 12 per cent until March 2009.
Jim Leng, Chairman of Corus, commented: "This offer from Tata Steel reflects the substantial value created for Corus shareholders since the pacing and open offer and launch of our 'Restoring Success' programme in 2003.
"This combination with Tata, for Corus shareholders and employees alike, represents the right partner at the right time at the right price and on the right terms. This creates a well balanced company, strategically well placed to compete in an increasingly competitive global environment."
(CD)
Tata said the acquisition is 'strategically compelling' and would create the fifth largest steel producer with pro forma crude steel output of 23.5 mln tonnes in 2005.
Commenting on the announcement, Ratan Tata, Chairman of Tata Steel, said: "This proposed acquisition represents a defining moment for Tata Steel and is entirely consistent with our strategy of growth through international expansion.
"Corus and Tata Steel are companies with long, proud histories. We have compatible cultures of commitment to stakeholders and complementary strengths in technology, efficiency, product mix and geographical spread.
"Together we will be even better equipped to remain at the leading edge of the fast changing steel industry."
Tata Steel has held constructive and satisfactory discussions with Corus' two main UK pension schemes and has offered upfront the IAS deficit on the Corus Engineering Steels Pension Scheme by paying £126m into it.
It has also offered to increase the contribution rate on the British Steel Pension Scheme from 10 per cent to 12 per cent until March 2009.
Jim Leng, Chairman of Corus, commented: "This offer from Tata Steel reflects the substantial value created for Corus shareholders since the pacing and open offer and launch of our 'Restoring Success' programme in 2003.
"This combination with Tata, for Corus shareholders and employees alike, represents the right partner at the right time at the right price and on the right terms. This creates a well balanced company, strategically well placed to compete in an increasingly competitive global environment."
(CD)
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900 jobs are to be axed by Tata Steel across the UK, almost 600 of which will be at plants in Wales. It is understood most of the Welsh losses will be management and administrative posts in Port Talbot and Llanwern near Newport. 155 jobs in Yorkshire will go, alongside 120 in the West Midlands and 30 on Teesside.
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