The European Commission (EC) has announced that it has opened an in-depth investigation to assess the proposed creation of a joint venture by Tata Steel and ThyssenKrupp, under the EU Merger Regulation. At this stage, the Commission is concerned that the merger may reduce competition in the supply of various high-end steels.
The Commission's initial market investigation raised several issues relating in particular to combining both companies' offer of certain specialty flat carbon steel and electrical steel products, namely, steel for automotive applications, metallic coated steel for packaging and grain-oriented electrical steel.
The Commission is concerned that, following the transaction, customers would face a reduced choice in suppliers, as well as higher prices. These customers include various European companies, ranging from major corporations to numerous small and medium-size enterprises (SMEs). Many compete with imported products in the European Economic Area, or export their products outside Europe and compete globally.