Tata Steel, the world’s sixth-largest and India’s largest steelmaker, on Thursday said that its Anglo-Dutch unit Corus had signed a memorandum of understanding (MoU) to sell a majority stake in Corus’ Teesside Cast Products business. The company, however, did not disclose the financial details of the deal to sell a majority stake in the business to Italian firm Marcegaglia SpA and South Korea's Dongkuk Steel Mill Co Ltd.

However, media reports in the UK indicated that the deal would be worth about $450 million.

Phil Dryden, divisional director of Corus long products said in a statement, “The proposed change of ownership fits the business plans of all participants and will significantly improve prospects for the further long-term development of steelmaking on Teesside.”

Tata Steel shares on Thursday were up 3.65 per cent to close at Rs 183.30 on the BSE. Tata Steel’s net profit from its Indian operations fell 56.4 per cent in the third quarter ended December 2008.

Tata Steel further said that Marcegaglia and Dongkuk would undertake due diligence to finalise the terms of the deal as soon as possible. Tata Steel would retain a minority holding in the Teesside business, while Marcegaglia would hold the largest equity interest, the company informed.