Anglo-Dutch steel maker Corus has confirmed it is accepting a GBP4.3bn ($US8.1bn) takeover offer from Indian rival Tata Steel.
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Corus is a key supplier to the motor industry.
The acceptance of the deal, first reported by the BBC late on Thursday, is the largest Indian takeover of a foreign company and, if approved by Corus shareholders, would create the world’s fifth-biggest steel firm.
Corus employs 47,300 people worldwide, including 24,000 in the UK at plants at Port Talbot, Scunthorpe and Rotherham, the BBC said.
The report noted that the firm was formed out of the 1999 merger of British Steel and Dutch group Hoogovens.
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By GlobalDataThe 455p-a-share offer is below the current price of Corus stocks, which were trading at 474p on Friday, the BBC added.
Tata reportedly has pledged to pay GBP126m into the Corus pension fund as part of the deal, and will increase the annual contributions to the British Steel fund.
It added it did not plan to relocate any Corus plants, but said job cuts could not be ruled out in the long-term, the BBC said.
