OREANDA-NEWS. The Board of Directors of Tata Steel Limited ("Tata Steel") at its meeting held on 20th October 2006, has approved acquisition of the entire issued share capital of Corus Group plc ("Corus") ("Acquisition"), at a price of 455 pence in cash for each share valuing Corus at GBP 4.3 billion. According to Corus and Tata Steel, the transaction will create the fifth largest steel making company of the world.

"New giant Tata-Corus with total manufacture of steel of 23,5 million tons in 2005 will create a high-quality and attractive platform for growth in Asia, incorporated with the leading European steel founder", - is spoken in the joint statement of both companies. The transaction should be approved by shareholders of both companies and regulation bodies. The subsidiary Tata Steel U.K will act as the buyer from Tata.

Commenting on today’s announcement, Ratan Tata, Chairman of Tata Steel, said: "This proposed acquisition represents a defining moment for Tata Steel and is entirely consistent with our strategy of growth through international expansion. Together we will be even better equipped to remain at the leading edge of the fast changing steel industry."

Jim Leng, Chairman of Corus, said: "This offer from Tata Steel reflects the substantial value created for Corus shareholders since the placing and open offer and launch of our "Restoring Success" programme in 2003. In the middle of last year, my board agreed a strategic way forward for Corus to seek access to low cost production and high growth markets. Consistent with this, the Company held talks with a number of parties from Brazil, Russia and India. This transaction represents the culmination of these talks.”

Tata Steel is India’s largest private sector steel company with 2005/06 revenues of US$5.0 billion and crude steel production of 5.3 million tonnes across India and South-East Asia. It is a vertically integrated manufacturer and is one of the world’s most profitable and value creating steel companies.

Corus is Europe's’s second largest steel producer with revenues in 2005 of Ј9.2 billion and crude steel production of 18.2 million tonnes, primarily in the UK and the Netherlands.