Thyssenkrupp nears deal with Tata Steel

Thyssenkrupp nears deal with Tata Steel
30/06/2018 , by , in ALLIED

Thyssenkrupp and Tata Steel are nearing a 15 billion euro ($17.4 billion) deal this week to combine their European assets into a global steel giant, sources familiar with the talks told Reuters.

Talks to hammer out the final details are progressing well and a compromise has been reached on closing a valuation gap between the businesses, three of the people said.

The combination of Thyssenkrupp’s and Tata Steel’s European steel assets, first announced in September, would create the continent’s second-largest steelmaker after Arcelor Mittal with 15 billion euros in combined sales. Sources told Reuters this month that the compromise options included a cash payment to Thyssenkrupp, changing the 50-50 ownership structure of the venture, lowering the debt to be transferred to it, or limiting dividend payments to Tata Steel for a number of years.

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