Tata Steel Outbids CSN in Corus Auction & becomes world's fifth-largest steel producer.

India'sata Steel outbid Brazilian rival CSN to take over European steelmaker Corus Group PLC, offering $11.3 billion (Rs.50,850 Crores) for the biggest-ever acquisition by an Indian company.

The winning bid values shares of London-based Corus at 608 U.K. pence each, 5 pence higher than the final offer made by CSN, said a statement from Tata Steel Ltd., which is part of the Tata Group - a sprawling business conglomerate with interests spanning salt to software.

The new offer represents a 22 percent premium of the $9.2 billion Tata Steel had offered in October. That offer was later trumped by CSN, sparking a bidding war.

Corus said its board of directors met and decided to recommend the sale to its shareholders, the company said in a statement to the London Stock Exchange.

"Tata and Corus are stronger together and will be able to compete effectively in an increasingly global environment. This combination creates a strong and robust platform for growth that will benefit all stakeholders," said Jim Leng, chairman of Corus.

The acquisition will help expand Tata Steel's reach into Europe and propel the company - currently ranked 56th in the world in output - into a global player in the metal business, Ratan Tata, chairman of the Tata Group, told a news conference in Mumbai.

He characterized the acquisition as "very positive" for Tata - and for Indian corporations in general. "I believe this will be the first step in showing that Indian industry can in fact step outside the shores of India in an international marketplace and acquit itself as a global player," Tata said.

In terms of output, Corus is three times the size of Tata Steel. A combined Tata-Corus could produce 25 million tons of steel a year making it the world's fifth-largest steel producer.