Tata Steel and Thyssenkrupp AG have agreed to combine their European steel businesses in a 50/50 joint venture to create new company called thyssenkrupp Tata Steel BV. It will be positioned as a leading pan European high quality flat steel producer with a strong focus on performance, quality and technology leadership. The transaction is still subject to merger control clearance by the European Union and other authorities.
“The joint venture will create a strong pan European steel company that is structurally robust and competitive,” said Natarajan Chandrasekaran, Chairman of Tata Steel. “This is a significant milestone for Tata Steel and we remain fully committed to the long-term interest of the joint venture company. We are confident that this company will create value for all stakeholders.”
“We will create a highly competitive European steel player based on a strong industrial logic and strategic rationale,” commented Dr. Heinrich Hiesinger, CEO of thyssenkrupp AG. “We will secure jobs and contribute to maintaining value chains in European core industries.”
Until completion of the JV process, thyssenkrupp Steel Europe and Tata Steel in Europe still operate as separate companies and as competitors. Only after completion of the JV process, thyssenkrupp Steel Europe and Tata Steel in Europe will be integrated as one company.