Tata Steel To Continue Talks With EU For Thyssenkrupp Joint Venture
Thyssenkrupp and Tata Steel earlier this year unveiled plans to combine their steel activities in Germany, the Netherlands and Britain to become the continent's second-largest steelmaker after ArcelorMittal
Photo Credit : REUTERS/Francois Lenoir/Files
Germany's ThyssenKrupp CEO Heinrich Hiesinger and Chairman of Tata Steel Natarajan Chandrasekaran pose at a joint news conference after signing a final agreement on Saturday to establish a long-expected steel joint venture, in Brussels, Belgium July 2, 2018.
Tata Steel Ltd today said that it will continue talks with the European Commission after the body raised concerns over its planned steel joint venture with Thyssenkrupp.
The European Commission (EC) yesterday opened a deeper investigation into the proposed steel joint venture over concerns that it could raise prices and harm competition.
Thyssenkrupp and Tata Steel earlier this year unveiled plans to combine their steel activities in Germany, the Netherlands and Britain to become the continent's second-largest steelmaker after ArcelorMittal.
"Tata Steel has noted the EC's concerns and will continue its discussions with the EC including providing further information and analysis, especially in relation to sectors they have identified, to secure approval for the proposed joint venture," the company said in a statement.
The Commission on Tuesday pointed out three areas where the combination of both companies' specialty flat carbon steel and electrical steel products could give them a dominant position: steel for the automotive sector, metallic coated steel for packaging and grain-oriented electrical steel.
Tata Steel shares, which had fallen as much as 6.2 percent in the current session, were trading down 3.2 percent at 0825 GMT.