The European Union today approved Tata Steel’s proposed acquisition of Anglo-Dutch steelmaker Corus, saying such a transaction would not impede competition.

“The European Commission has cleared under the EU Merger Regulation the proposed acquisition by the Indian steel producer Tata Steel of Corus Group Plc,” the Brussels-based regulator of the EU said in a statement.

Shares of both companies were up on the bourses. While Tata Steel shares ended 1.99 per cent higher at Rs 478.35 at the Bombay Stock Exchange, Corus shares were up 0.38 per cent at 531 pence in intra-day trade on London Stock Exchange.

“The Commission’s investigation has found the proposed transaction would not impede effective competition in European Economic Area or any substantial part of it, as the parties’ activities only overlap to a limited extent,” it said.

Tata Steel is in the middle of a takeover battle for Corus with Brazilian steelmaker CSN, which had made a higher bid of 515 pence per Corus share as against 500 pence by the Indian company. While CSN’s bid values Corus at 4.9 billion pounds, Tata’s offer is slightly lower at 4.7 billion pounds.

The Commission is also expected to announce its decision on a rival bid for Corus by CSN by February 5, 2007.

Earlier this week, British takeover regulators set a deadline of January 30 for the two companies to place their final offers on the table.

The Indian steel major has already won the approval from US anti-trust authorities for Corus acquisition.

The Commission also said the combined market share of the two companies was relatively low and below a level where it could affect either the total quantity or the prevailing price in the market. PTI

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