Thyssenkrupp, Tata Steel near decision on steel JV

london — Germany’s Thyssenkrupp and India’s Tata Steel are close to deciding who will lead their planned European steel joint venture, four people familiar with the matter said on Friday.

Settling on the venture’s leadership has been delayed by a strategy crisis and change of CEO at the German industrial conglomerate, which has said it would split into 2 companies.

The holdup has riled the Thyssenkrupp workforce. A labour leader said there would be “trouble” if the matter was not resolved soon.

Andreas Goss, head of Thyssenkrupp’s steel unit, is the front runner to become chief executive of the combined entity, which will be Europe’s second-largest steelmaker after ArcelorMittal, the people said.

The new company will have around 48,000 workers and about €17 billion ($19.4 billion) in sales, with production facilities in Germany, the Netherlands and Britain.

Goss, seen as well connected in the industry, has led Thyssenkrupp’s steel division since 2014. The unit’s adjusted operating profit rose by 26 per cent to €687 million over the past financial year.

His appointment would further strengthen Thyssenkrupp’s position in the 50-50 venture, which already includes a greater share of proceeds should the entity be listed on the stock exchange, which is widely expected.

Signed in June, the planned entity still needs European antitrust approval, which is expected towards the end of the first quarter of 2019. The groups might have to divest assets to secure approval, sources have previously said.