JAMSHEDPUR: The Anglo-Dutch steel giant, Corus, will be delisted from the stock exchanges and become a subsidiary of Tata Steel next month after Corus shareholders approve the Indian company's takeover proposal.

Tata Sons Chairman Ratan Tata, who would head the European company after the transaction is completed, on Saturday said an integration committee would be formed to oversee the merger of the newly acquired company.

Speaking to reporters after a meeting with Corus Chairman James Leng here, Mr. Tata said the committee, headed by him, would be formed soon and would comprise representatives from Corus and Tata Steel.

He said Corus shareholders would consider Tata Steel's $11.3 billion offer to acquire Corus at an Extraordinary General Meeting on March 7.

Once the shareholders' approve the proposal, Corus would be delisted from the stock exchanges and would function as a subsidiary of Tata Steel from April, he said.

The Tata group chief also said Tata Steel was looking for overseas acquisition for supply of iron ore and coal. He said the company was looking for coal blocks in Australia, in addition to the acquisition of five per cent stake in a coal company there.

Tata Steel Managing Director B. Muthuraman said the financial structure for the funding of Corus acquisition would be finalised within a few weeks and "`we will announce our strategy for funding.'' Dismissing suggesions that the costly acquisition may impact Tata Steel's domestic expansion plans, Mr. Tata said the company was concentrating on the already announced expansion plan of its Jamshedpur plant as well as setting up three greenfield projects in Jharkhand, Orissa and Chattisgarh.

The company was waiting for clearances from States and the Central Government in this regard. He said the company would like to ensure availability of raw material for its new plants.

Allaying apprehension of a job cut in Corus, Mr. Tata said making Corus cost competitive did not mean job cuts.

Tata Steel would strive to make Corus a competitive company, he said, adding that the company would prove to the critics in course of time that the acquisition was right. — PTI

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