Herbies and Slaughters break new ground on £5bn Tata deal

Slaughter & May and Herbert Smith have bagged the lead roles on Tata Steel UK’s £5.1bn takeover of Anglo-Dutch steelmaker Corus Group, in the biggest takeover by an Indian business of a foreign company.

Slaughter & May is acting for Corus Group, Europe’s second largest steel producer, on the recommended offer by Tata Steel UK Limited, for the entire issued and to be issued share capital of Corus, valuing Corus at £4.3bn.

The Slaughter & May team is being led by partner Anthony Newhouse on the corporate side and Andrew Balfour on the finance side. De Brauw Blackstone Westbroek advised Corus on Dutch law aspects and Shearman & Sterling advised on US law aspects as well as some UK aspects including all competition issues.

Herbert Smith is acting for Tata Steel UK, a wholly-owned indirect subsidiary of Tata Steel Limited, India’s largest private sector steel company, on its £5.1bn takeover offer of Corus.

The Herbert Smith team is being led by David Paterson and Malcolm Lombers on the coprorate side with assistance from senior corporate consultant, Nimi Patel. Patel has been key to developing the firm’s relationship with the Tata Group, having previously advised Tata Group subsidiary Tata Tea on its £280m purchase of Tetley Group’s share capital and the subsequent £187m refinancing.

Herbert Smith’s Dutch ally Stibbe is advising Tata on Dutch law. The team is led by Gerhardt Vels.

This deal continues the trend for consolidation of the steel sector. Earlier this year Cleary Gottlieb Steen & Hamilton acted for Mittal Steel on its EUR26.9bn (£18.1bn) takeover of Arcelor, which was advised by Skadden Arps Slate Meagher & Flom.