From national emblem to Kutub Minar’s rot iron pillar, there are “N” numbers of examples to show the importance of steel industry in India. The uses of iron and steel are as old as Mahabharata is. Weapons of Indian ancient gods or temples of Dravidian culture, shows Indians were very well aware of uses of iron.

Oligopolistic in nature, Indian steel industry contributes only 2 percent in GDP but it is second largest in world in terms of production and export. Indian steel industry is full of competition as well as wonders.Cost and price of raw material effects a lot in steel industry.

 organizational change or cost hike in Europe or tough completion from china,Tata steel did not get a good experience in case of acquisition of Corus It is interesting to see whether this acquisition of Bhushan steelis beneficial for Tata or not? This paper tries to get answer through financial leverage testing and Debt equity ratio testing as these two are parameters of financial health of a company.

 Keywords- Acquisition, Tata steel, Bhusan Steel