Tata Corus

Tata Steel Acquiring Corus plc: A Case of an emerging MNE getting a conventional European MNE The facial expression of Tata Steel getting Corus throws up several elicit questions on emerging multinationals and traditional multinationals in the brand industry and particularly the complexities of the acquisition in the above context. What has been surprising in the above face is that how could a handsome steel maker, Tata Steel from a developing demesne 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 operating(a) 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 world(prenominal) steel maker, Corus decided to sell itself off to a small steel maker from a developing country. Many questioned if the Tatas were advised in acquiring Corus that had accumulated huge debt burden, made practicable losses and whose share footing had drastically come down. The interest issue of this acquisition has been on how the final bidding footing 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 smashing for the acquisition? It appears that several external players participated in the acquisition work out and so how were they all involved in the bidding process. Further, the issues of mail service 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 somatic or group company acquiring a tune in Europe or the U.K. seemed possible only in the realm of fantasy. In addition to these issues, Indian companies in world-wide have had huge liabilities of origin in term of slimy quality, service and... If you want to get a full essay, influence it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.