Tata Steel would pump in around $ 4.1 billion with the rest coming from financiers, Ratan Tata said. Tata Sons, the holding company of Tata Steel, is expected to come up with the money.

Mr Tata added the deal was a moment of great fulfilment for India. "Now Tata Steel has a global footprint and we can fulfil our global aspirations," he said.

Mr Ratan Tata said the acquisition marked the entry of Indian steel companies in Europe. "Tata will have a major role in creating the presence of Indian companies in Europe. Ours will grow and integrate with Tata Steel. Some of Corus' members will stay back with us and I look forward to a worthwhile business," he said.

Corus, which brings in a capacity of 19 millions tones per annum, will also help the Indian steel giant in improving its technology. "Europe requires high-quality service and Corus will help us in fulfilling those needs. Corus will also help Tata Steel in improving our technology," Tata Steel Managing Director B.Muthuraman explained.

The Managing Director said that Corus management and work practices were similar to Tata Steel and they were "planning to form an executive committee for the two companies".

Meanwhile, analysts continue to be sceptical about the long-term prospects of Tata Steel's takeover of Corus. Standard & Poor's Ratings Services said today that it maintained its 'BBB' long-term corporate credit ratings on Tata Steel Ltd (Tata Steel) on CreditWatch with negative implications. At the same time, Standard & Poor's retained its 'BBB' foreign currency rating on Tata Steel's senior unsecured bank loans of $750 million and $500 million on CreditWatch with negative implications.