The big news for Corus, Europe’s second largest steel producer, is its successful acquisition by Tata Steel for £6.2 billion. The deal finally went through in April and means the enlarged company will have a crude steel production of 27 million tonnes this year. It will be the world’s fifth largest steel producer with 84,000 employees globally.
Ratan Tata, chairman of Tata Steel and Corus, says the deal represented an exciting future for both businesses. The management team of Corus will remain with the group and work on the successful integration of the two organisations, he adds. “Together we are a well balanced company, strategically well placed to compete at the leading edge of a rapidly changing global steel industry.”
Last year Corus had revenues of £9.2 billion, 41,100 employees in over 40 countries and was benefiting from a very active construction market in the UK, in part because of the 2012 Olympics construction programme. Tata by comparison had revenues of $5 billion and was one of the world’s most profitable steel companies.
Corus had been in the middle of an IT consolidation programme, which was producing business benefits to the whole organisation. Work on the infrastructure was split into four domains: datacentres; end user computing; networks; and collaborations.
Corus uses SAP and had been moving all its applications and business processes onto a single version of the software, instead of the numerous different business silo systems, and was beginning to concentrate on master data management.
The acquisition deal suits both companies. Tata, which was only the 56th largest steel producer, increases its global scale, while Corus has gained access to one of the fastest growing markets in the world. It remains to be seen how the two organisations will now be integrated, but during the next 12 months IT is likely to be concentrating on pulling the two operations together.
“Together we are a well balanced company, strategically well placed to compete at the leading edge
of a rapidly changing global steel industry”
– Ratan Tata, chairman, Tata Steel & Corus