EU reg­u­la­tors block Tata Steel’s joint ven­ture with Thyssenkru­pp

The Hindu Business Line - - NEWS -

Thyssenkru­pp and Tata Steel’s plan to form a land­mark joint ven­ture was re­jected by the EU an­titrust reg­u­la­tors on Tues­day, as they were con­cerned that the deal would push up prices and re­duce com­pe­ti­tion.

The Euro­pean Com­mis­sion (EC) said the com­pa­nies, which had looked to the deal as one way to tackle over­ca­pac­ity and other chal­lenges in the steel in­dus­try, had not done enough to al­lay its con­cerns.

“Steel is a cru­cial in­put for many things we use in our ev­ery­day life, such as canned food and cars. Mil­lions of peo­ple in Europe work in these sec­tors and com­pa­nies de­pend on com­pet­i­tive steel prices to sell on a global level,” EC Com­mis­sioner Mar­grethe Vestager said in a state­ment. The EC said im­ports from third coun­tries would not have been able to off­set po­ten­tial price hikes re­sult­ing from the deal. thyssenKru­pp and Tata Steel last month flagged the EU veto after they de­clined to of­fer fur­ther con­ces­sions to ad­dress reg­u­la­tors’ con­cerns.

Ger­man steelto-sub­marines group thyssenKru­pp will now list its el­e­va­tor busi­ness, its most prof­itable unit worth an es­ti­mated €14 bil­lion ($15.9 bil­lion). It may also con­sider new own­er­ship struc­tures for its car parts, plant en­gi­neer­ing and ma­rine sys­tems units.

The EC ex­pressed con­cerns over po­ten­tial price hikes and re­duced com­pe­ti­tion due to the joint ven­ture

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