Tata Steel, ThyssenKrupp to merge European operations

Tribune News Service

New Delhi, September 20 

Tata Steel today said it has signed an agreement with German steel giant ThyssenKrupp to merge their steel operations in Europe in a 50:50 joint venture company.

“Tata Steel Ltd and ThyssenKrupp AG have signed an MoU to create a leading European enterprise by combining the flat steel businesses of the two companies in Europe and the steel mill services of ThyssenKrupp group,” the domestic steel giant said. 

The proposed 50:50 JV — ThyssenKrupp Tata Steel — would be headquartered in Amsterdam region of the Netherlands and will supply premium and differentiated products to customers, with annual shipments of about 21 million tonnes of flat steel products, the statement said.

The merger would be through a non-cash transaction framework based on fair valuation where both shareholders would contribute debt and liabilities to achieve an equal shareholder in the venture.

The two companies expect annual synergies of 400-600 million euros, it said.

“The JV would have a pro forma turnover of about 15 billion euros per annum (Rs 115,000 crore),” Tata Steel said.

Non-cash deal 

• The proposed 50:50 JV  would be headquartered in Amsterdam and will supply premium and differentiated products, with annual shipments of about 21 million tonnes 
• The merger would be through a non-cash transaction framework based on fair valuation
• The two companies expect annual synergies of 400-600 million euros
• The JV would have a pro forma turnover of about 15 billion euros per annum (Rs 115,000 crore)