The $13 billion acquisition of the European steelmaker turned out to be the Tata group’s biggest blunder. A takeover of the national flag carrier could prove equally painful.
The similarities are uncanny. Nearly 14 years ago, Tata Sons chairman Ratan Tata was the force behind a decision of the Tata Steel management, led by managing director B. Muthuraman, to acquire Corus for $13 billion. Tata had wanted the group’s steel business to be global and Corus made that possible. Formed through the merger of British Steel and Koninklijke Hoogovens of the Netherlands, Corus was steeped in legacy and bureaucracy issues.
The acquisition, despite being expensive, seemed to make a lot of sense. Tata Steel became the sixth largest steel producer in the world and got access to a …
Prince leads the newsroom at The Morning Context as managing editor. A fascination with the written word has taken Prince to some of the leading newsrooms across the country, including The Economic Times, Dow Jones Newswires, Forbes India and Moneycontrol. In a career spanning 20 years, Prince has led teams, managed pages, projects and special editions, and has authored The Consolidators, published by Penguin Random House in 2017.
Managing Editor
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Mumbai