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10/30/2018, 6:01 PM (Source: TeleTrader)
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EU starts probe into Tata, ThyssenKrupp steel merger

The European Commission announced on Tuesday it will start a broad investigation into the planned merger agreement between the Indian steel-making giant Tata and the German industrial conglomerate ThyssenKrupp, citing possible breach of competition rules as the reason behind the probe. "The Commission is concerned that, following the transaction, customers would face a reduced choice in suppliers, as well as higher prices," the EU executive said in a statement. "These customers include various European companies, ranging from major corporations to numerous small and medium-size enterprises."

In September last year, the two companies signed a preliminary deal that would merge their European steel operations in a 50/50 joint venture, resulting in the second largest steel producing company in Europe after ArcelorMittal. The new entity is expected to record sales of about €15 billion and a workforce of about 48,000, currently at 34 locations, while shipments are expected to be about 21 million tons a year. However, the European Commission now has 90 working days, until 19 March 2019, to make the decision whether to approve the merger.

Breaking the News / FH