Tata Steel and thyssenkrupp AG have signed a definitive agreement to combine their European steel businesses and create a new company in 50/50 joint venture.
The new company, to be christened thyssenkrupp Tata Steel B.V., will be positioned as a major pan-European high-quality flat steel producer with a strong focus on performance, quality and technology leadership. The joint venture is built on the strong foundations of common value systems and a long heritage within the steel industry.
The transaction is subject to merger control clearance in several jurisdictions, including the European Union.
Natarajan Chandrasekaran, Chairman of Tata Steel, said: “The joint venture will create a strong pan European steel company that is structurally robust and competitive. 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.”
Dr. Heinrich Hiesinger, CEO of thyssenkrupp AG: “We will create a highly competitive European steel player – based on a strong industrial logic and strategic rationale. We will secure jobs and contribute to maintaining value chains in European core industries.”
UNtil complete closure on the deal, thyssenkrupp Steel Europe and Tata Steel in Europe will continue as separate companies and competitors. Only after the joint venture begins will thyssenkrupp Steel Europe and Tata Steel in Europe integrate as one company.
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