Corus acquisition vindicates India'strength: Bhattacharjee

Kolkata, Oct 20 (UNI) Welcoming the move of the Tatas to acquire Corus Group Plc, Europe's second largest steel maker, West Bengal Chief Minister Buddhadeb Bhattacharjee today said the event proved the strength of Indian industry.

" It is a very important development which has proved the capabilities of the Tata Group and the strength of Indian industry in world market," he told reporters.

He said the acquisition of Corus would add to the strength of Indian industry in the global arena.

The Tata Group, which is poised to setting up its ambitious small car factory in West Bengal is close to acquiring the entire issued share capital of the UK-based Corus Group at a price of 455 pence in cash for each share valuing Corus at GBP 4.3 billion.

The Board of the Corus Group today decided in London to accept the Tatas' proposal for acquisition.

Once acquired, it would be the biggest foreign takeover by an Indian company.

On Tuesday last Tata Steel had announced having made an " indicative non -binding offer to acquire 100 per cent equity" in Corus Group Plc.

The offer had been made through a recommendatory offer route at 455 pence per share in cash, it had said.

Industry sources said Tata Steel would be catapulted to the sixth position in the world from the present 56th world ranking once the acquisition was complete.

This would also give Tata Steel a foothold in Europe, while Corus would get access to the fifth largest iron ore reserve in the world.

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