ThyssenKrupp defends merger talks with Tata Steel

By: |
Berlin | July 09, 2016 11:00 PM

German conglomerate ThyssenKrupp today defended merger talks with Indian rival Tata Steel saying the consolidation of the sector in Europe was necessary due to the "difficult economic situation".

Tata Steel,Tata Steel news, Tata Steel latest, UK Business, UK Business news, UK Business latestTata has been considering seven bids for its UK assets since putting them up for sale in March, citing a global oversupply of steel, cheap imports into Europe, high costs and currency volatility. (Reuters)

German conglomerate ThyssenKrupp today defended merger talks with Indian rival Tata Steel saying the consolidation of the sector in Europe was necessary due to the “difficult economic situation”.

The Indian firm said yesterday it was in talks with its German competitor and other unnamed groups to create a large European steelmaker but did not give further details.

Tata has been considering seven bids for its UK assets since putting them up for sale in March, citing a global oversupply of steel, cheap imports into Europe, high costs and currency volatility.

“We have always said that we consider a consolidation in the European steel sector necessary due to the very difficult economic situation,” Thyssen spokeswoman Nicola Roettger told AFP.

“The entire steel industry in Europe is fighting to continue to have a future in a difficult economic context,” she said.
“Very few European steelmakers are currently making profits,” she said.

Koushik Chatterjee, group executive director and Tata Steel’s executive director for Europe, said it was “too early to give any assurances about the success of these talks”.

The British government has been racing to help find a buyer for Tata’s business, which had accounted for about 16,000 jobs in total, many of them at the Port Talbot steelworks in Wales, the country’s biggest steel plant.

Last month, Tata agreed to sell its European piping business to Greybull Capital, a British-based family investment firm, safeguarding 4,400 jobs in Britain.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Cairn sets eyes on piercing Air India; begins process to seize Indian overseas assets to recover tax award
2Airtel rolls out Covid support initiatives for customers on its digital platform
3It’s ‘learn from home’ after WFH amid COVID pandemic; Edtech helps in upskilling, reskilling of employees