This is a case study on the series of negotiation between the Tata Steel (a part about TATA Group) which had acquired Corus, the Anglo-Dutch steel firm after a long eight month long negotiation over price and terms of acquisition because of the entry of a third party, Brazil's CSN. This is one of the most interesting acquisition cases in the recent decade due to the fact that the acquired company was nearly four times the size of the acquirer in terms of the total revenue. Here, Corus Group was acquired by Tata Steel in the month of April 2007 for £6.2bn. Tata Steel is India’s largest private sector steel company with 2005-06 revenues of US $5.0 billion and steel production of over 5.3 million tons across India and South-East Asia (as provided in the Annual Report 2006). Corus Group is Europe's second largest steel producer with the annual revenues of over £9.2 billion and a crude steel production of 18.2 million tons in 2005 (gathered from Annual Report Corus). This deal is supposedly the biggest deal ever from an emerging market. The deal is a powerful amalgamation of near to the ground cost upstream production in India with the far above the ground end downstream processing facilities of Corus.
Corus group Plc. was formed on 6th October 1999, by the merger of British Steel and Koninklijke Hoogovens, following the privatization of many steelworks companies by the U.K. government. The company was the supplier of steel and related services to the construction, automotive, packaging, mechanical engineering and other demanding markets worldwide. The headquarters of Corus is in London and the company was once an esteemed member of FTSE 100 index. It has major integrated plants in UK, Netherland, Norway with capacity of 18.2 mn tone...
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... (English) Companies Act 1985; subject to High Court of Justice in England and Wales and Corus' shareholders approvals being obtained.
• The whole acquisition was proposed to be funded by its own cash resources and loans raised by Tata Steel and with its subsidiary companies formed for the purpose of this acquisition.
According to the information available and the readings from news and Annual reports of Tata Steel 2006 and 2007 and annual reports of Corus, the deal was dealt in a way of get the maximum cash rather than creating value for the Corus. Yes, I agree that Tata was interested in Corus to lead them a way to Europe, but for Corus it was maximizing the price. The deal could have been closed earlier if the TATA could have negotiated with CSN over taking their proposal back and providing a NO BID (like the case of Arcelor-Mittal) in other companies on sale.
Corporations functioning within the jurisdiction of the Australian Commonwealth are governed and regulated by the provisions of the Corporations Act, 2001. Common law principles developed through judicial
Also, the competition between existing players in this industry is high. There are about 619,000 metal enterprises in the USA in 2005 (IBISWorld, 2007).There are many companies that produce different kinds of metal products in the market. Besides, the bargaining power of buyers is high because product difference for the buyers of the metal products is small. It is not easy to differentiate the quality of one metal product from another. In addition, the cost of switching for the buyers is low. The number of substitutes of metal products is also high thus the buyers have great bargaining power.
Industry Analysis – Nucor has established itself as a leader in the steel industry through efficiency and innovation.
The extraordinary power of the steel industry to shape the life of its communities and the people in them remain...
[8] Colonial Mutual Life Assurance Society Ltd v Producers and Citizens Co-operative Assurance Co. of Australia Ltd (1919) 26 CLR 110
The Political, Social, and Legal Environment of Business. Case Study Analysis: Union Carbide Corporation and Bhopal. A single slip in action may cause lasting sorrow. A slight mistake in operation at a Union Carbide pesticide plant in Bhopal, India, caused a lot of deaths and injuries. What a tragedy it is.
engines, axels and the like - sits not in Detroit, Tokyo or Stuttgart, but in the
Week 5 Lecture. (2006). FIN 325 Mergers, Acquisitions, and International Finance. Retrieved from rEsource on July 7th, 2006 from https://ecampus.phoenix.edu/secure/resource/resource.asp
Siemens is a German conglomerate that specialise in electronics and electrical engineering. They currently operate in four different sectors, these being Healthcare, Industry, energy and Infrastructure & Cities sector (Siemans a). They are represented in 190 countries (Siemens b), employ around 362,000 employees (Siemens c) and in 2013 achieved a revenue of €75,882 million and a net income of €4,409 million (Siemens d). This essay will focus on Siemen’s energy sector.
The lifestyle of people across the world is developing rapidly. As there is a growing concern for people about the lifestyle and way of living, the scope for the microfinance industry is also at a growing pace. A large number of people across the world prefer finance for the purpose of purchase of consumer durables as well as lifestyle products. As the credit card EMI options are more expensive, people prefer NBFCs for the purpose of consumer durable loans. The project done in bajaj finserv explains the role of NBFCs in the consumer durable loans and the procedure undertaken in order to disburse the consumer durable loans.
In company law, registered companies are complicated with the concepts of separate legal personality as the courts do not have a definite rule on when to lift the corporate veil. The concept of ‘Separate legal personality’ is created under the Companies Act 1862 and the significance of this concept is being recognized in the Companies Act 2006 nowadays. In order to avoid personal liability, it assures that individuals are sanctioned to incorporate companies to separate their business and personal affairs. The ‘separate legal personality’ principle was further reaffirmed in the courts through the decision of Salomon v Salomon & Co Ltd. , and it sets the rock in which our company law rests which stated that the legal entity distinct from its
middle of paper ... ... ty.htm#index [3] Lecture notes [4] [1916] 2 AC 307, HL. [5] Farrar, J and Hannigan, B (1998) Farrar's Company Law (4th edn), p.75 [6] [1933] Ch 935, CA.
This report is divided into two parts. In the first part, the Honda-Rover case is discussed in terms of their capacity and incentive to deliver in the alliance, what they wanted from each other, and what was the outcome of the alliance and why it brought limited benefit to Honda and Rover. In the second part, the reasons are presented to show why Tata might do better than Honda by establishing its engineering expertise in UK.
According to Corporation Act 2001 s124(1), it illustrates that ‘’A company has the legal capacity and powers of an individual both in and outside the jurisdiction” . As it were, company as a legal individual must be freely with all its capital contribution shall embrace liability for its legal actions and obligations of the company’s shareholders is limited to its investment to the company. This ‘separate legal entity’ principle was established in the case of Salomon v Salomon & Co Ltd [1987] as company was held to have conducted the business as a legal person and separate from its members. It demonstrated that the debt of company is belonged to the company but not to the shareholders. Shareholders have only right to participate in managing but not in sharing the company property. Besides ,the Macaura v Northern Assurance Co Ltd [1925] demonstrates that the distinction between the shareholders and company assets. It means that even Mr Macaura owned almost all the shares in the company, he had no insurable interest in the company’s asset. The other recent case is the Lee v Lee’s Air Farming Ltd [1961] which illustrates that the distinct legal entities between employee ad director allows Mr.Lee function in dual capacities. It resulted that the corporation can contract with the controlling member of the corporation.
The Harvard Business School case study Silvio Napoli at Schindler India summarizes the various problems and issues facing Schindler India regarding its entrance into the new foreign market, India. Schindler Holdings Ltd. is a Swiss-based manufacturer of escalators and elevators which is looking for potentially entering into the Indian elevator market. Main executive committee members predicted that the Indian industry showed great promise in terms of future growth potential. The company’s objective was to manufacture standardized elevators at a cost lower than current customized elevator market. Silvio Napoli, who is vice president of Schindler in Asia, was chosen to lead the new entry into India. To successfully enter and penetrate the Indian market, Silvio and company needed to consider a variety of factors like but not limited to: mode of entry and type of strategy to implement, organizational structure, outsourcing and logistics approaches, marketing, and domestic and global hiring procedures.