Economics

Thyssenkrupp and Tata to create Europe's no. two steelmaker

The two foresee annual synergies of €400 million to €600 million, helped by savings on areas including capacity utilisation, sales and administration and research and development.

20.09.2017

(Bloomberg) Thyssenkrupp and Tata Steel reached a tentative deal to merge their European steel businesses in a bid to create the region’s second-largest producer and tackle overcapacity in the industry.

The German and Indian companies have signed a memorandum of understanding for the joint venture to be named Thyssenkrupp Tata Steel, which will be equally owned by both parties, the companies said on Wednesday. The transaction is expected to be finalised at the beginning of next year and will require the approval of the European Union.