Unfazed by Corus, Tata eyes US cos
The group sees more opportunities in the US, specially in hotel, auto parts, telecom and food and beverage areas.india Updated: Dec 28, 2006 15:48 IST
Indian conglomerate Tata may be making waves with a planned mega takeover of top European steelmaker Corus, but its biggest acquisition so far has been in the United States, where it is eyeing even more lucrative deals.
Tata has offered about 5.6 billion pounds ($11.1 billion) for Corus as it battles with Brazilian steelmaker CSN, or Companhia Siderurgica Nacional, to seize control of the Anglo-Dutch firm.
The deal is poised to outsize by 11 times Tata's largest corporate takeover abroad so far -- the nearly $700-million purchase of a 30 per cent share of US food and beverage firm Energy Brands Inc in August.
But the Indian company shows no sign of relenting from its expansion path in the United States.
"We see the United States as a major opportunity for us," David Good, Tata's chief representative in North America, said in an interview, citing the hotel, auto parts, telecom and food and beverage sectors as best bets for expansion.
The United States already accounts for nearly 30 per cent of the Tata group's annual international turnover of $6.7 billion. The group's total annual revenue is about $22 billion, equivalent to about three per cent of India's Gross Domestic Product (GDP).
Tata's 2007 foray into the United States will begin with a January 11 takeover of the Ritz-Carlton Boston hotel from its current American owners, Millennium Partners, for $170 million.
The Taj Boston will be the second US hotel property of Tata's hotel chain Taj Hotels, Resorts and Palaces.
First Published: Dec 28, 2006 13:05 IST