Tata Steel, ThyssenKrupp merger would have spiked steel prices
The European Commission has said it was forced to block a proposed merger between Indian steel major Tata Steel and German giant ThyssenKrupp over concerns that it would have led to a spike in the metal’s prices.
The Commission, the executive arm of the 28-member European Union (EU), formally tabled its decision this week after ThyssenKrupp announced its decision to withdraw from the joint venture plans last month in anticipation of the EU ruling.
“Without remedies addressing our serious competition concerns, the merger between Tata Steel and ThyssenKrupp would have resulted in higher prices. So we prohibited the merger to avoid serious harm to European industrial customers and consumers,” said Commissioner MargretheVestager, in charge of competition policy at the European Commission.