Tata Steel's Acquisition of Corus (B)
|
Case Code: BSTR355 Case Length: 17 Pages Period: 1997-2009 Pub Date: 2009 Teaching Note: Not Available |
Price: Rs.300 Organization: Tata Steel Limited, Corus Plc. Industry: Steel Countries: UK, The Netherlands, India Themes: Mergers and Acquisitions |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Global Steel Industry
The global steel industry had witnessed an unprecedented boom between the year 2002 and mid-2008. Several major steel companies across the world went on expanding capacities encouraged by the increasing demand led by the significant growth in the world economy and the rising price of the commodity (Refer to Exhibit II for Top Ten Steel producing companies in the World)...
Realizing Synergies after the Acquisition
Tata Steel planned to implement the integration process of Corus at two levels - strategic and functional. It had constituted teams for this purpose in April 2007. These two teams worked in areas like manufacturing, procurement, research and development (R&D), IT, finance, and capital projects to achieve the targeted synergies...
Impact of Global Slowdown
According to industry experts, the timing of the Tata Steel-Corus deal turned out to be wrong because of the global economic crisis. They opined that the deal was done at peak valuation as almost all asset classes started declining from late 2007 onward...
The Road Ahead
The global demand for steel remained weak even in the second quarter of financial year 2009-10. However, the prices of raw materials for making steel fell in the year 2009. The Benchmark price for coal fell to US$ 120 per tonne in 2009 from US$ 300 per tonne in 2008. The Benchmark price for iron ore fell to US$ 62 in 2009 from US$ 102 per tonne in 2008...
Exhibits
Exhibit I: Quarterly Performance of Tata Steel Group
Exhibit II: Top Ten Steel Producing Companies in the World
Exhibit III: Tata Steel Group - Income Statement (2007-09)
Exhibit IV: Tata Steel Group - Balance Sheet (2007-09)
Exhibit V: Tata Steel's Stock Price Chart (November 2007 - October 2009)
Buy this case study (Please select any one of the payment options)
| Price: Rs.300 |
Price: Rs.300 | PayPal (7 USD) |
