Tata Steel acquired Corus, a Dutch steel company, and raised a large debt to finance the transaction.
By whom was the deal to be paid for?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Tata Steel UK, a special purpose vehicle set up for the deal
Option (1) Tata Sons Ltd., another company of the Tata group — Incorrect. Tata Sons Ltd. invested in preference shares, along with Tata Steel. It put money into the deal but did not pay for it.
Option (2) The lenders who gave Tata Steel a debt of over $8 billion — Incorrect. The lenders gave Tata Steel a debt of over $8 billion to finance the transaction. Lending money is not the same as paying for the deal.
Option (3) Tata Steel UK, a special purpose vehicle set up for the deal — Correct. A special purpose vehicle (SPV) is a company formed for one particular purpose. Tata Steel set up Tata Steel UK for this deal, and the deal was to be paid for through it.
Option (4) Tata Steel Europe, a company of the Tata group in Europe — Incorrect. Tata Steel Europe is the name Corus got in 2010, after it was acquired. It was the company bought.
Note: The Tata and Corus story sits before the chapter even begins. Opening boxes are not a warm-up act; they can bring a full question.
NCERT (2026-27 Edition):
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