Thyssenkrupp-Tata Steel Remedies Won't Impact JV Synergies
The joint venture, which was signed last year but still needs to be approved by the European Commission, targets 400 million to 500 million euros ($448-$560 million) in annual synergies
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Asset sales offered by Thyssenkrupp and Tata Steel to get antitrust approval for a planned joint venture will not jeopardise targeted synergies for the combined entity, a person familiar with the matter said.
The two steelmakers submitted a remedy proposal to the European Commission late on Monday, offering remedies including selling two hot-dip galvanising plants in Spain and Belgium that supply the automotive industry.
Along with packaging and electrical steel, that had been one of the areas of competitive concern for the Commission, which now has until June 5 to review the offer and make a decision.
The joint venture, which was signed last year but still needs to be approved by the European Commission, targets 400 million to 500 million euros ($448-$560 million) in annual synergies.
Remedies also include the potential sale of packaging steel activities operated by Tata Steel in Britain and Belgium, the source said, adding the Commission had dropped its concerns in the area of electrical steel.
Thyssenkrupp declined to comment on the specific proposals.
"The offer is extensive and substantial. At the same time, it is acceptable to the joint venture partners and no risk to the industrial logic of the joint venture," Thyssenkrupp Chief Executive Guido Kerkhoff said in a statement.