Tata Corus
CONSOLIDATED FINANCIAL STATEMENT PROJECT
TATA- CORUS ACQUISITION
SUBMITTED TO: Dean Dr. Badrinath Prof. K. Govindarajan
SUBMITTED BY BADRI NARAYANAN - 112071013
TABLE OF CONTENTS
SR NO
1.
PARTICULARS
PART 1 • Global steel industry • About TATA Steel • About Corus PART 2 • Legal form • Mergers and Acquisition • Method • Terms of transaction • Valuation Matters
2.
3.
PART -3 • Reasons for the merger • Objectives for a merger • Culture differences • Post - Acquisition
4.
PART 4 • Outcome of the merger – success or failure • Financial indicators • Milestones of the TATA Corus deal
5.
CONCLUSION
6.
BIBLIOGRAPHY
PART – 1
GLOBAL STEEL INDUSTRY
Steel was an alloy of iron and carbon containing less than 2 per cent carbon and 1per cent manganese and small amounts of silicon, phosphorus, sulphur and oxygen. Steel was the most important engineering and construction material in the world. It was used in every aspect of our lives, from automotive manufacture to construction products, from steel toecaps for protective footwear to refrigerators and washing machines and from cargo ships to the finest scalpel for hospital surgery. Most steel was made via one of two basic routes: 1. Integrated (blast furnace and basic oxygen furnace). 2. Electric arc furnace (EAF). The integrated route used raw materials (that is, iron ore, limestone and coke) and scrap to create steel. The EAF method used scrap as its principal input. The EAF method was much easier and faster since it only required scrap steel. Recycled steel was introduced into a furnace and re-melted along with some other additions to produce the end product. Steel could be produced by other methods such as open hearth. However, the amount of steel produced by these methods decreased every year. Of the steel produced in 2005, 65.4per cent was produced via the integrated route, 31.7percent via EAF and 2.9 percent via the open hearth and other methods. At a steel mill, the crude
TATA- CORUS ACQUISITION
SUBMITTED TO: Dean Dr. Badrinath Prof. K. Govindarajan
SUBMITTED BY BADRI NARAYANAN - 112071013
TABLE OF CONTENTS
SR NO
1.
PARTICULARS
PART 1 • Global steel industry • About TATA Steel • About Corus PART 2 • Legal form • Mergers and Acquisition • Method • Terms of transaction • Valuation Matters
2.
3.
PART -3 • Reasons for the merger • Objectives for a merger • Culture differences • Post - Acquisition
4.
PART 4 • Outcome of the merger – success or failure • Financial indicators • Milestones of the TATA Corus deal
5.
CONCLUSION
6.
BIBLIOGRAPHY
PART – 1
GLOBAL STEEL INDUSTRY
Steel was an alloy of iron and carbon containing less than 2 per cent carbon and 1per cent manganese and small amounts of silicon, phosphorus, sulphur and oxygen. Steel was the most important engineering and construction material in the world. It was used in every aspect of our lives, from automotive manufacture to construction products, from steel toecaps for protective footwear to refrigerators and washing machines and from cargo ships to the finest scalpel for hospital surgery. Most steel was made via one of two basic routes: 1. Integrated (blast furnace and basic oxygen furnace). 2. Electric arc furnace (EAF). The integrated route used raw materials (that is, iron ore, limestone and coke) and scrap to create steel. The EAF method used scrap as its principal input. The EAF method was much easier and faster since it only required scrap steel. Recycled steel was introduced into a furnace and re-melted along with some other additions to produce the end product. Steel could be produced by other methods such as open hearth. However, the amount of steel produced by these methods decreased every year. Of the steel produced in 2005, 65.4per cent was produced via the integrated route, 31.7percent via EAF and 2.9 percent via the open hearth and other methods. At a steel mill, the crude