Tata Steel said today it is in "constructive discussions" with Thyssenkrupp over potential merger of its European business with the German conglomerate. The statement follows media reports that said that the company may scrap merger plans with Thyssenkrupp.
Tata Steel said today it is in “constructive discussions” with Thyssenkrupp over potential merger of its European business with the German conglomerate. The statement follows media reports that said that the company may scrap merger plans with Thyssenkrupp.
“Tata Steel would like to inform that it continues to be engaged and is in constructive discussions with Thyssenkrupp regarding a potential merger of the steel businesses of the respective companies in Europe.
“However, until a definitive agreement is reached, there can be no assurances that these discussions will result in a transaction,” the steel major said. This has reference to the recent media speculation regarding the potential strategic collaboration with Thyssenkrupp, it said.
“This disclosure, is made in terms of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2005,” Tata Steel said in a statement.
The merger talks had been revealed by the Indian steel giant last year as part of a major restructuring of its UK steel business.
Such a deal with the German steel major could potentially lead to the formation of a European steel behemoth with blast furnaces in Wales, the Netherlands and Germany. The deal has been slow moving as Tata Steel tries to solve the problem of its own 15-billion-pound British steel pensions scheme.
Last month its UK workers had voted in favour of a new pension deal to save their jobs. Nearly 10,000 workers voted in a ballot in favour of moving from a final salary pension to a less generous scheme in return for job safety and Tata’s promise of nearly 1-billion-pound worth of investment over the next 10 years.
Tata Steel, which owns the UK’s largest steelworks at Port Talbot in South Wales among other units, has been working on finding a solution to the crisis in the steel industry since it announced a major restructuring in March 2016.