Tata Steel seals landmark deal with Thyssenkrupp
The firms will now form Europe's 2nd-biggest steelmaker, after Arcelor Mittal
Thyssenkrupp's supervisory board on Friday gave the green light for a steel joint venture with Tata Steel, paving the way for the European steel sector's biggest shake-up in more than a decade.
The largest deal in Europe's steel industry since the takeover of Arcelor by Mittal in 2006, the 50-50 joint venture - to be named Thyssenkrupp Tata Steel - will have about $17.5 billion in sales.
Based in the Netherlands, it will be the continent's No 2 steelmaker after ArcelorMittal and forms the core of Thyssenkrupp CEO Heinrich Hiesinger's plan to turn the steel-to-submarines conglomerate into a technology company.
"The joint venture with Tata Steel is an important milestone for the transformation of Thyssenkrupp to an industrials and service group and will lead to a significant improvement of the financial figures of Thyssenkrupp, effective with closing," the group said. The deal comes as European steel makers face stiff tariffs of 25 per cent on their exports to the United States, their biggest market, fuelling fears the local market might be forced to absorb more volume as a result.
'US tariffs will not affect steel production in India'
Bengaluru: The heavy tariffs imposed by the United States on imported steel and aluminum would not have any major impact on steel production in India which exports only 3 per cent to the US, Union Steel Minister Chaudhary Birender Singh said in Bengalauru.
Unions welcome merger
general secretary of the Community union
'With a commitment to avoid compulsory redundancies until October 2026, and the first £200m of any operating profit being invested back in the business, this joint venture has the potential to safeguards jobs for a generation'
Unite union's national officer
'Tata Steel's UK workforce is world-class and has worked tirelessly under a cloud of uncertainty to keep steel-making alive in the UK. Those steelworkers have made great sacrifices in working to secure a future for Tata Steel'
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever
DISCLAIMER: mid-day and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.
Mumbai protests against the Pulwama terror attack