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The correct answer is option 1: McLeod. The Soorajmull-Nagarmull group took over McLeod, a British firm.
Option 2: Octavius Steel is not the correct answer. The question specifically mentions the Soorajmull-Nagarmull group taking over a British firm, but Octavius Steel is not a British firm.
Option 3: Davenport is also not the correct answer. The question is asking about a British firm being taken over by the Soorajmull-Nagarmull group, but Davenport is not a British firm.
Option 4: Andrew Yule is not the correct answer either. While Andrew Yule is a British firm, it was not taken over by the Soorajmull-Nagarmull group according to the question. Therefore, this option does not match the information given.
In summary, the Soorajmull-Nagarmull group acquired McLeod, a British firm, as stated in the correct answer option 1.