Sunday, Jun 26, 2022
Outlook.com
M&As: tata-corus deal

Land Alloy!

Fair price or fat price? As analysts pore over the Corus deal, Outlook looks at how Tata Steel can gain. It's a perilous path.

Land Alloy!
Land Alloy!
outlookindia.com
-0001-11-30T00:00:00+05:53

But even as Tata was addressing the media, walking in and out of endless interviews, and talking about how Tata Steel has achieved a global scale, Tata Steel's stock was plummeting. At the close of the day's trade, it had slumped by 10 per cent. The consensual chorus among analysts about the Corus deal was that Tata had gone overboard in the price he paid for the buyout. Maybe, the analysts hinted, the merger had more to do with egos, not with financial strategies. It was possible, they added, that Tata had a ferocious tiger by the tail.

Despite such differing opinions between a far-sighted businessman and short-term punters, there were little doubts that India Inc is the biggest beneficiary. The deal paves the way for other Indian promoters to bid aggressively for global acquisitions; it may also get the 'ambition adrenalin' running in several domestic entrepreneurs. "I believe this is the first step in showing that Indian industry can step outside Indian shores, and into international competitive markets. Over the years, we'll think that the Corus acquisition was visionary," said Tata.

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