India-headquartered steel giant Tata Steel has announced that it has signed a definitive agreement with Germany-based steelmaker ThyssenKrupp to combine their European steel businesses in a 50/50 joint venture (JV) in a new company. This agreement follows the signing of a memorandum of understanding in September 2017.
According to the company’s statement, the proposed new company, to be named ThyssenKrupp Tata Steel B.V., will be positioned as a leading pan-European high-quality flat steel producer with a strong focus on performance, quality and technology leadership. The transaction is subject to merger control clearance in several jurisdictions, including the European Union.
Until closing, thyssenkrupp Steel Europe and Tata Steel in Europe still operate as separate companies and as competitors. Only after closing, thyssenkrupp Steel Europe and Tata Steel in Europe will be integrated as one company.