What a day we have had!!!!!!! When I woke up from my bed, a great news was waiting to cheer me. Yes, it is the TATA- CORUS deal. This is the largest deal ever by an Indian company. Strangely Corus is around 4.5 times the size of Tata Steel. Tata Steel is going to pay around $ 11 billion to become the world's 5th largest in terms of steel output. This did not come as easily as said. First Tatas gave a bid in October'06 to buy Corus. When all of us were happy that the deal will go through, there came the Brazilian company Companhia Siderúrgica Nacional (CSN) outbidding Tatas. It led to a round of revisiting of bids by both the companies . Both of them were given Jan 30 as the last date to give their finalised bid. As both the companies were very keen on the acquisition, it was later decided that there will be an auction consisting of 9 rounds. Though nothing much happened in the initial 2 rounds, at the end Tata managed to outbid CSN by 5 pence a share to emerge the winner.
The merger of Arcelor and Mittal steel kickstarted the consolidation in the steel industry, where the market is very fragmented. Even after the Tata-Corus deal, the top 5 companies command only 20% market share. Hence there are possibilities of much more M&A s possible in the coming years.
One more great news to us is the Century scored by Sachin Tendulkar. He shut the mouths of his critics by scoring a hundred of just 76 balls. A huge six over the mid wicket was the image of the day. The ball never returned. Deservingly, Sachin was both man of the match and man of the series. Let us hope that we see Sachin at his prime in the upcoming world cup.
India is proceeding in the right direction. Way to go !!!!!!!!!!! Come on India dhikadho
