Thyssen-tata Steel deal runs into EU wall

DNA (Daily News & Analysis) Mumbai Edition - - FRONT PAGE - —PTI

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.

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