Thyssenkrupp, Tata Steel sign European merger deal
LONDON, June 30, 2018
Leading steelmakers Thyssenkrupp and Tata Steel have signed the final contract to combine their European steel divisions following the approval of a 50-50 joint venture by Thyssenkrupp's board.
The deal to establish a long-expected steel joint venture is the European steel industry's biggest shake-up in more than a decade.
The agreement comes after months of negotiations since an initial agreement was announced in September. The joint venture - to be named Thyssenkrupp Tata Steel - will have about 48,000 workers and about 17 billion euros ($19.9 billion) in sales.
Based in the Netherlands, it will be the continent's second-largest steelmaker after ArcelorMittal. It forms the core of Thyssenkrupp CEO Heinrich Hiesinger's plan to turn his 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," Thyssenkrupp said.
Tata Steel Chairman Natarajan Chandrasekaran, in a separate statement, said the joint venture will create "a strong pan- European steel company that is structurally robust and competitive".
