Thyssen-tata Steel deal runs into EU wall
Brussels: The EU’S powerful antitrust authority on Tuesday blocked the merger of German industrial conglomerate Thyssenkrupp with Indian steel giant Tata, an expected veto that kills the deal.
“We prohibited the merger to avoid serious harm to European industrial customers and consumers,” EU competition commissioner Margrethe Vestager said.
The aim of the merger had been to create the second largest European steel company behind multinational giant Arcelormittal and to join forces in the face of the surge of Chinese steel.
The companies last month abandoned the merger on expectations that the EU would refuse the deal, with Thyssenkrupp announcing it would slash 6,000 jobs as a result, mainly in Germany.
The commission, the EU’S executive arm, criticised the merger, which “would have reduced competition and increased prices for different types of steel,” a statement said.
Proposed solutions “did not offer adequate remedies to address these concerns,” it said.