Tata Steel to merge European operations with ThyssenKrupp

Posted September 21, 2017

Shares of Tata Steel today rose almost 2 per cent after the company said its deal with German steel giant Thyssenkrupp to merge their steel operations in Europe in a 50:50 joint venture.

The Government and the country's biggest steel union have called on Tata Steel and Thyssenkrupp to commit to safeguarding British jobs in the wake of an announcement that the two companies intend to merge their European steel operations.

The proposed 50:50 joint venture would have a turnover of about €15 billion (Rs115,000 crore) and now employs about 48,000 people spread across various locations.

IG Metall union, which represents metalworkers in Germany, is concerned the joint venture could pave the way for ThyssenKrupp to exit the steel business entirely.

Boris Johnson could resign if Theresa May opts for 'Swiss-style' Brexit
The former Tory leadership hopeful spoke to TV cameras in NY after bumping into them on his return from a jog. Downing Street insisted that May has full confidence in Johnson.

The joint venture will be named ThyssenKrupp Tata Steel and is expected to be up and running in late 2018, following further negotiations, due diligence, and subject to approval from relevant authorities and shareholders.

Earlier, labor representatives, who have half of the seats on Thyssenkrupp's supervisory board, had also expressed concern over job losses.

"Over all, this is a good deal", said Dalton Dwyer, managing director of Industry Corporate Finance, a London-based firm that advises on steel mergers.

Tata Steel and ThyssenKrupp have signed a preliminary agreement to combine their steel production operations across Europe to form the second largest steel manufacturer venture, behind ArcelorMittal.

Arsenal vs Cologne — UEFA Europa League
But in the end at some stage I thought they would not play the game, because I can't see the police taking any risk. He played very deep in the first half, when he had more support in the second half he became more unsafe ".

Shares in Tata Steel rose 2% on news of the deal in Mumbai, while those in ThyssenKrupp opened 5% higher in Frankfurt.

N Chandrasekaran, Chairman, Tata Steel said, "As our partnership with thyssenkrupp progresses in Europe, Tata Steel is well positioned to leverage India's growing economy by adding significant capacity in value added products to meet emerging customer needs".

The deal could have sweeping implications for the industry and for 8,000 workers employed in the United Kingdom in particular. "Not only do we share a clear performance orientation, but also the same understanding of entrepreneurial responsibility toward workforce and society", he added. Under the agreement, both the companies will have 50% stake in the newly formed entity.

In particular we will be pressing Tata to demonstrate their long term commitment to steelmaking in the United Kingdom by confirming they will invest in the reline of Port Talbot's Blast Furnace No.5.

Monday Update-David Johnson Wrist Injury, "Would Require Surgery"
He finished 2016 with 1,239 rushing yards and 16 touchdowns, and he added 879 yards and four touchdowns through the air. It's going to be extremely hard for owners without I.R. spots to keep Johnson on rosters tying up a spot for that long.

Storm clouds over Tata Steel in IJmuiden?