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Tata poised for £5bn Corus offer | |
(about 10 hours later) | |
India's Tata Steel is close to launching a £5bn ($9.3bn) takeover bid for Anglo-Dutch steel firm Corus, the BBC has learned. | |
If successful it would be the largest Indian takeover of a foreign company and create the world's fifth-largest steel firm. | |
Last week, Tata Steel, part of the Tata conglomerate, said it was looking at potential takeovers "including Corus". | |
Tata will be in London this week to meet the UK Prime Minister Tony Blair. | Tata will be in London this week to meet the UK Prime Minister Tony Blair. |
Its visit as part of an Indian business delegation coincides with the arrival of Indian Prime Minister Manmohan Singh for an Indo-UK summit. | |
News of a potential Corus bid came as the Sunday Telegraph reported Tata had lined up a £3.5bn ($6.5bn) financing deal to make the acquisition. | |
Consolidation | Consolidation |
Rapid economic growth in developing countries including China and India is creating huge demand for steel and many firms are looking to add to their steel-making assets. | |
But as Chinese steel production soars, other manufacturers are trying to consolidate so they can cut costs and stay competitive. | |
Earlier this year Mittal Steel bought rival Arcelor for $34bn, creating the world's biggest steel maker. | |
Tata Steel is a small steel producer by global standards, but has the backing of the giant Tata Group, one of India's largest companies with interests as diverse as carmaking, communications, tea and oil. | |
Corus was created after British Steel merged with Dutch firm Hoogovens in 1999 and has shed thousands of jobs in recent years. | |
It employs 47,300 people worldwide and reported a pre-tax profit of £580m last year. |