India's Tata Steel has agreed to a £4.3 billion takeover bid for Anglo-Dutch firm Corus Group.
The deal, India's largest ever foreign takeover, extends a wave of consolidation in the fragmented steel sector and follows Mittal Steel's $31 billion acquisition of rival Arcelor this year.
Analysts did not ruling out a counterbid for Corus amid growing pressure on Russian and Asian producers to expand their global reach but said the terms of the deal to be completed in January made it less likely.
Shares in Corus, which have risen more than 50 per cent this year amid persistent bid talk, fell 1.5 per cent to 471-1/4 pence earlier this morning, still above the offer price. Shares in Tata Steel rose 1.7 per cent to 510.25 rupees in Mumbai.
Tata offered 455 pence per share cash as expected after the companies confirmed earlier this month they were in talks.
The Indian firm agreed to refinance the majority of Corus's debt and inject funds into its pension plan. It also agreed to a 1 per cent break fee if the deal collapses due to a rival bid.