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Corus accepts Tata's takeover bid | |
(about 2 hours later) | |
UK-Dutch steel firm Corus has accepted a £4.1bn ($7.7bn) takeover offer from Indian rival Tata. | |
BBC business editor Robert Peston said the final details were now being agreed and a formal announcement was expected early on Friday morning. | |
The deal is the largest Indian takeover of a foreign company, and will create the world's fifth-largest steel group. | |
Corus, which employs 47,300 worldwide and 24,000 in the UK, has declined to comment on the news. | |
Increasing steel consolidation | Increasing steel consolidation |
Corus was formed by a 1999 merger between British Steel and the Dutch group Hoogovens. | |
Beside steel, Tata's interests range from carmaking to Tetley's tea. | Beside steel, Tata's interests range from carmaking to Tetley's tea. |
In 2005, Tata was only the world's 56th biggest steel producer, and its takeover of Corus represents the first expansion of its steel business outside of Asia. | |
"It's the changing of the guard on a global scale," said our correspondent. | |
"Once upon a time, Corus was called British Steel and was a sprawling British industry. Now it's to be taken over by an Indian company." | |
The takeover comes amid growing consolidation in the global steel industry. | |
With both prices and demand soaring this year, led by strong demand from China, Dutch firm Mittal Steel bought European rival Arcelor for $34bn back in the summer. | With both prices and demand soaring this year, led by strong demand from China, Dutch firm Mittal Steel bought European rival Arcelor for $34bn back in the summer. |
In 2005, Tata was the world's 56th biggest steel producer, and its takeover of Corus represents the first expansion of its steel business outside of Asia. |