The case of Tata Steel acquiring Corus throws up several interesting questions on emerging multinationals and traditional multinationals in the steel industry and particularly the complexities of the acquisition in the above context. What has been surprising in the above case is that how could a small steel maker, Tata Steel from a developing country like India buy up a large steel company, Corus PLC from the United Kingdom. Prior to the acquisition, Corus was four times bigger than Tata Steel. However, the operating profit for Tata Steel was $840 million (sale of 5.3 million tonnes), whereas in case of Corus it was $860 million (sale of 18.6 million tones) in the year 2006. It is also interesting to find out why a large global steel maker,…show more content… An Indian corporate or group company acquiring a business in Europe or the U.K. seemed possible only in the realm of fantasy. In addition to these issues, Indian companies in general have had huge liabilities of origin in term of poor quality, service and reliability in the international markets. At the same time many the global steel industry was getting restructured from a large number of smaller steel makers to a fewer large steel conglomerates through the worldwide mergers and acquisition. The steel companies in India were also wondering on how to go about in these circumstances. In the above context, how did the top management of Tata Steel and the Tata Group perceive the acquisition of Corus? When Tata Steel began bidding higher price on Corus plc, many wondered how the Tatas manage the huge financial deal and whether it will be good for the financial health of Tata Steel…show more content… This acquisition process has started long back in the year 2005. However, Corus itself was involved in a considerable number of Merger & Acquisition (M&A) deals and joint ventures (JVs) beginning in the year 2000. In a period of seven years Corus was involved in 14 deals. In 2006, the Tata first offered 455 pence per share of Corus but by the end of the bidding process in 2007, Tata offered 608 pence per share, which is 33.6% higher than the first offer. For this deal, Tata has financed only $4 billion, although the total price of this deal was $12billion. Given below are the reactions of Ratan Tata and B. Muthuraman on what they felt about the acquisition: Ratan Tata's opening