Corus EGM approves takeover by Tata Steel

Shareholders of the Corus group agreed to Tata Steel's 6.2 billion pound ($12 billion) takeover of the UK steelmaker, sealing the largest foreign acquisition by an Indian company.

Investors representing 97 per cent of the shares backed the purchase, the London-based company said today following an extraordinary general meeting in London. The acquisition will be effective from April 2 and Corus shares will stop trading on exchanges on March 29. "The intention of this acquisition is about growth, not about job losses," Corus Chief Executive Officer Philippine Varin said in an interview today.

Tata offered 608 pence a share in January for Corus, the former British Steel, beating a competing proposal from Brazil's Cia. Siderurgica Nacional SA following a bidding contest that lasted three months. The purchase is the second biggest in the industry, behind Mittal Steel Company's $38.3 billion takeover of Arcelor SA last year.

"Tata Steel is pleased with the outcome of the EGM held in London on March 7. It stands committed to work along with Corus to create a vibrant and value creating enterprise," said B Muthuraman, managing director, Tata Steel. Shares of Corus were at 605 pence at 12:17pm in London today, valuing steelmaker at about $11 billion. The stock was at 407.5 pence on October 5, when Tata said it was considering an alliance.