Steel manufacturers thyssenkrupp and Tata plan to merge their European operations, creating the region's second largest steel company after ArcelorMittal. 21 Sep 2017
A memorandum of understanding has been signed on the 50/50 venture, to be called thyssenkrupp Tata Steel, the companies said in a statement.
The merger will bring annual synergies of €400 million to €600 million, in part through the loss of around 4,000 jobs, the statement said.
German company thyssenkrupp will contribute its Steel Europe business to the planned joint venture, as well as its MillServices & Systems steel mill services provider. Tata will add all of its flat steel activities in Europe.
Tata Steel, the Indian company which took over British Steel, had been looking for a buyer for its struggling UK operations for some time. In May 2016 the UK government proposed extending "special help" to the British Steel Pension Scheme (BSPS) to help save the company but that plan was dropped in September 2016.