In 2007, Tata Steel, the largest steel producer in the Indian private sector, acquired Corus, a Dutch steel company, in a landmark deal worth $12 billion. This acquisition marked a significant milestone as it became the largest private sector transaction by an Indian company outside India at the time. To finance this massive acquisition: Tata Steel raised over $8 billion in debt. A special purpose vehicle (SPV) called Tata Steel UK was established to manage the funding. Additional financial support came from Tata Sons Ltd., which invested $1 billion in preference shares, matched by another $1 billion from Tata Steel itself. In total, Tata Steel arranged around ₹36,500 crores, using a combination of debt, equity, and internal accruals. This significant financing arrangement directly influenced the capital structure of the acquiring company. In 2010, the acquired entity was renamed Tata Steel Europe. This case illustrates the crucial role that financial decision-making plays in business expansion and diversification, highlighting important financial concepts such as capital structure and financing options.