Tata Steel has said that it has signed definitive agreements with thyssenkrupp AG to combine their European steel businesses in a 50/50 joint venture in a new company.
This follows the signing of a Memorandum of Understanding in September 2017. The proposed new company, to be named thyssenkrupp Tata Steel BV, will be positioned as a leading pan European high quality flat steel producer with a strong focus on performance, quality and technology leadership.
The joint venture is built on the strong foundations of common value systems and a long heritage in the industry. The transaction is subject to merger control clearance in several jurisdictions, including the European Union.
Commenting on the issue, Natarajan Chandrasekaran, Chairman of Tata Steel, said: “The joint venture will create a strong pan European steel company that is structurally robust and competitive. This is a significant milestone for Tata Steel and we remain fully committed to the long-term interest of the joint venture company. We are confident that this company will create value for all stakeholders.”
Meanwhile, shares of the company were trading at Rs 583.20 apiece, up 2.70 per cent from the previous close at 09:30 hours on BSE.