January 31, , added a shining feather in the cap of corporate Tata Steel which was celebrating its centenary year Sign in to write a comment. The relationship between pre-merger returns and post- merger returns has also been examined. There were many likely synergies between Tata Steel, the lowest cost producer of steel in the world, and Corus, a large player with a significant presence in value added steel segment and a strong distribution network in Europe. The reason for the same has been that the initial motive behind the deal between the Tata and Corus was not the revenue size of the Corus rather its market value. The next few weeks will be interesting to watch, as Tata Steel wrestles to find a way out of its European misadventure.

Corus consultancy services based in new Port, South Wales, provided iron, steel, and metal related consultancy, right from the stage from core mining to that of marketing the finished products. However, both faced serious challenges in extracting work out of the British workers. Ratio analysis and t-test has been done on the four years pre merger and four years post merger ratios. It investigates a phenomenon within its real-life context. The regulatory and stock market environment in which mergers take place is described. Corus expertise in making better grades of steel used in automobiles and in aerospace could be used to boost Tata Steel’s supplies to the growing Indian automobiles market. The Indian economic reform since has opened up a whole lot of challenges both in the domestic and international spheres.

In another study by Casr et al. Merger In business or in economics a merger is a combination of two companies into one larger company. This is because of various facilitating factors. Corus has supported the Tata acquisition due to different motives.

Tata Corus: 7 Lessons from a Deal from Hell | Founding Fuel

Tata Steel has signed a memorandum of understanding with the Persian Gulf Special Economic Zone to set up a 3 million tonne gas-based steel plant at Bander Abbas. Log In Sign Up. The hope is that synergies yata through the merger could yield a stronger European steel business that can compete more effectively with the Russians.


merger of tata steel and corus case study

Corus fata was formed through the merger of Koninklijke and British Steel in year October The plants are located at United Kingdom and at the Netherland. Case Study Volumes Collection. For one, a part stock deal may have softened the blow a fair bit. Enter the email address you signed up with and we’ll email you a reset link.

Tata Steel emerged as the fifth largest steel producer in the world after the acquisition. Gupta teaches a course on Business Problem Solving at his alma mater. The production capacity figure for includes Stocksbridge for half the year.

merger of tata steel and corus case study

It is true that the Forus may have gone in with their eyes open that the underperforming UK assets could prove to be problematic. January 31,added a shining feather in the cap of corporate Tata Steel which was celebrating its centenary year Corus in turn was expected to benefit from Tata Steel’s expertise in low cost manufacturing of steel.

He used event study methodology to stele abnormal returns for 30 day window around the earnings announcement and reported that there was no statistical evidence to show that Indian capital market was efficient in its semi strong form. I don’t remember IG being so critical then Did it have something to do with that transition and acse that the Corus acquisition was one of the biggest legacies of the Ratan Tata era?

Tata Corus: 7 Lessons from a Deal from Hell

P University,Shimla Abstract Mergers are not a new phenomenon. The results shows that there is no significant change in the short run but the merger has a long term effect on the company. Acquisition An acquisition, also known as takeover or a buyout is the buying of one company the target by another. This book provides a unified view of the organizational, legal, regulatory and financial aspects of mergers and acquisitions.


In Richards bay South Africathe company is working on a 1, 35, tonnes per annum ferrochrome plant. Some well known financial organizations also took the necessary initiatives fata restructure the corporate sector of International Research Journal of Commerce Arts and Science http: Stock swap is often used as it allows the shareholders of the two companies to share the risk involved in the deal.

Case studies research means single and multiple case studies, can include quantitative evidence, relies on multiple sources of evidence and benefits from the prior development of theoretical propositions. But during the time of acquisition held inthe price per share was pence, which is Bythe situation worsened, once Chinese mergwr makers faced with huge overcapacity started to dump steel in UK. Sudipto Roy on Apr 27, 3: Merger of Tata Steel And Corus dhananjayjadhav Most of the long run event anc show negative returns to acquirers in case of mergers Loughran and Vijh et al.

Lf was a manufacturer of semi-finished and finished carbon steel products at plants in Europe, including in the UK and the Netherlands.

Shiv S Tripathi Tataa.