Thyssenkrupp-Tata Steel JV collapses
India’s largest steelmaker Tata Steel Ltd will explore new options after competition watchdog European Commission blocked its proposed joint venture (JV) with Germany’s Thyssenkrupp on Friday.
According to the agreements between the two sides signed last June, Tata Steel Europe was to offload close to €2.2 billion of debt on its balance sheet to the combined entity. The JV would have created Europe’s second-largest steel maker after ArcelorMittal by merging the two companies’ operations in Germany, the Netherlands and the UK.
In statement on Friday, Tata Steel said that the JV was an important strategic initiative for the company to create a sustainable portfolio in Europe, which would have also helped it de-consolidate the European business and deleverage its balance sheet. “Tata Steel remains committed to the above strategy and will explore all options to achieve similar outcomes in the future,” it added.