Tata Steel to Continue Discussions with the European Commission on Proposed Joint Venture with Thyssenkrupp

2018-11-01

Nov. 1, 2018 - On 30th June, Tata Steel and thyssenkrupp AG signed definitive agreements to combine their European steel businesses in a 50/50 joint venture in a new company. The proposed joint venture is subject to merger control clearance in several jurisdictions, including the European Union, and until the completion of the JV process, thyssenkrupp Steel Europe and Tata Steel in Europe will operate as separate companies and as competitors.

Over the last few months, Tata Steel and thyssenkrupp have engaged in parallel with the European Commission (the "EC") to provide information in relation to the businesses which would be part of this joint venture. Following pre-notification engagement with the EC, both parties notified the proposed joint venture to the EC on 25th September.

On 30th October, in line with the expected timelines of the merger review process, the EC announced that it will undertake a Phase II review of the merger proposal and will investigate certain areas of preliminary competition concern. Tata Steel has noted the EC's concerns and will continue its discussions with the EC including providing further information and analysis, especially in relation to sectors they have identified, to secure approval for the proposed joint venture.

Tata Steel along with thyssenkrupp continues to believe in the strong industrial logic and rationale for the proposed joint venture, and regard it as the optimal outcome for the future of its European steel business as well as for wider stakeholders in the European steel industry. The business combination is envisioned as a structurally robust, sustainable and competitive company, which will be a reliable, efficient and technologically strong partner for its customers. We also remain committed to continued constructive engagement with the EC in the following months as part of the next phase of this review process.