Tata Steel May Merge With Corus to Reduce Costs, Mail Reports

Tata Steel May Merge With Corus to Reduce Costs, Mail Reports Update datetime: 2008-12-16 9:55:16

Tata Steel Ltd., India's biggest steelmaker, may merge with its Corus Group Ltd. unit next year as the British company attempts to save 350 million pounds ($526 million) in costs, the Daily Mail said in its online edition.

The merged company will become the world's second-biggest steelmaker after ArcelorMittal, the London-based newspaper reported on its Web site, without saying where it obtained the information.

Corus said Dec. 11 "all options" are open in talks with labor unions, including the possibility of cutting pay, as it seeks to slash costs because of weakening demand. The company, which operates plants in the U.K. and Netherlands, said in October it may extend a 20 percent output cut into the first quarter as demand slows.