EU regulators block Tata Steel’s joint venture with Thyssenkrupp
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