Enter multiple symbols separated by commas

EU Clears Proposed Takeover of Corus by Tata Steel

The European Union on Friday cleared the proposed takeover of British steelmaker Corus Group by India's Tata Steel.

The European Commission's antitrust office said the transaction "would not impede effective competition" in Europe. If completed, the deal would mark the biggest ever Indian takeover of a foreign company.

Tata Steel is in a battle for control of Corus with Brazil's CSN, and British takeover regulators early this week set a Jan. 30 deadline for both companies to come forward with new offers.

Brazil's Companhia Siderurgica Nacional SA had raised the stakes in the takeover war for Corus last week when it made a $9.6 billion bid that topped a sweetened offer by Tata Steel.

Corus is a producer of carbon steel and aluminum products. The Commission said in a statement it would accept the takeover because the activities of the two companies "only overlap to a limited extent.

Corus, which employs 47,300 people worldwide, has been searching for a business partner for a year.

The company -- formed through a 1999 combination of formerly state-owned British Steel PLC and Dutch metals producer Koninklijke Hoogovens NV -- is under pressure to link with a low-cost rival and has said it would make sense to find a partner with assets in countries such as Brazil, India and Russia, as rising raw material and energy costs in Britain and the Netherlands chip away at profits.

Tata Steel is considered a main player in India.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.