Tata Steel finally acquired Corus. Tata Steel, biggest Indian Steel Company bought Europe's second largest company, the deal was finalized in October 2006 itself but it was on the condition that if anyone offered to buy Corus for more price than the Tata offered then Corus can cancel the deal with some compensation.
Few did try to buy it for more but it was now more on status of TATA and hence TATA finally acquired it no matter how high they are paying.
Its, no doubt a significant deal because it was neither cheap to TATA and nor easy for them. It resulted in loss in TATA's shares in Mumbai Stock Exchange, but they bought it. It happens rarely when a small company buys a bigger one, TATA Steel is word's 56th largest Steel company whereas Corus Group was 9th largest one.
The merger gave them 5th position in the world. Now they are 5th largest in the world.
Its said that TATA Group was developed under Govt's conservative policies. The beginning of TATA was with competition with British companies but after Indian independence, this company took advantage of Govt.'s policies. JRD Tata was though a forward looking person and he started Air India but then too, TATA group was known more as a slow moving corporate. But its no doubt that its also a achievement of Ratan Tata (Current head of TATA Group) .
When Ratan Tata took the command of TATA Group then things started changing, now TATA is everywhere , from Tea to Software from Cars to common salt. He took used every opportunity and this the reason that TATA is still having a same reputation without being disturbed from current new corporate groups.
One of the important aspect about TATA Group is that its not controlled by any family, the founder of the company .. Jamshedji Tata was not having any child and nor JRD Tata was having any, now its in hands of Ratan TATA means this company is governed by professional people only.
Its quite clear that risk of buying such a big company was only possible because of capable management. Earlier to this, Tata bought other foreign bodies too including Tately. Its already having its reach in Asian market but by this European merger, Tata became a well known brand throughout the world.
Tata is now world's 5th largest Steel company, not to mention here that word's largest company Mittal Arcelor is also owned by non resident Indian ie. Laxmi Mittal. Hence now world's 5 biggest company is having two companies from Indians.
Its also noticeable that Mittal's pressure also encouraged TATA to acquire Corus, In 2005, Mittal had an agreement with Jharkhand Govt. to establish a big Steel plant and he also has some negotiations with Orrisa's Govt. So it was one another reason which triggered the TATA-Corus acquisition.
This merger automatically gave new market to TATA and this deal, being costly is still justifying for TATA, this way they will give more dependencies to neglected region of India like Jharkhand, Orrisa and West Bengal where its main region for TATA's industrial activities.
If TATA were said to develop such market which they got in advance because of acquisition then would cost them real high and a lot of competition with lots of time. This is no, doubt a wise decision, beneficial for TATA as well for India too .