Tata Steel-thyssenkrupp JV may divest assets to address EU concerns

2019-02-28

Feb. 27, 2019 - The proposed joint venture between Tata Steel's European unit and thyssenkrupp may have to divest some of its assets to address concerns raised by the European Commission. The Commission, which is checking if the JV will harm competition, had issued a Statement of Objections on February 13. thyssenkrupp in a debt issuance prospectus said "thyssenkrupp is currently assessing the document carefully and will use the Statement of Objections as basis for engaging in further constructive talks with the European Commission in order to address their competitive concerns in an appropriate manner and if needed by proposing divestments of certain assets."

The joint venture will be the second largest steelmaker in Europe, behind ArcelorMittal. It will have annual revenues of EUR 17 billion and will produce 21 million tonnes of steel a year.