Tata Corus

Tata Steel Acquiring Corus plc: A Case of an emerging MNE getting a tralatitious European MNE The instance of Tata Steel acquiring Corus throws up several interest questions on emerging multinationals and traditional multinationals in the nerve industry and particularly the complexities of the acquisition in the above context. What has been surprising in the above sheath is that how could a lessened steel maker, Tata Steel from a developing landed estate like India buy up a large steel company, Corus PLC from the United Kingdom. Prior to the acquisition, Corus was four times bigger than Tata Steel. However, the usable profit for Tata Steel was $840 million (sale of 5.3 million tonnes), whereas in case of Corus it was $860 million (sale of 18.6 million tones) in the year 2006. It is also interesting to find out why a large globose steel maker, Corus decided to sell itself off to a small steel maker from a developing country. Many questioned if the Tatas were voguish in acquiring Corus that had accumulated huge debt burden, made operational losses and whose share charge had drastically come down. The challenging issue of this acquisition has been on how the final bidding price of the Corus rise up to 70% over the stock price of Corus prior to the bidding.

Most importantly, how did Tata Steel organize the huge roof for the acquisition? It appears that several external players participated in the acquisition fulfil and so how were they all involved in the bidding process. Further, the issues of locating acquisition are also unique in this case as the context and culture of the acquirer and the acquired companies are different. Until the 1990s, non many Indian companies had contemplated spreading their wings abroad. An Indian corporeal or group company acquiring a credit line in Europe or the U.K. seemed possible only in the realm of fantasy. In addition to these issues, Indian companies in common have had huge liabilities of origin in term of ridiculous quality, service and... If you want to get a full essay, inn it on our website: Orderessay

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