Thyssenkrupp remains optimistic for steel fusion with Tata Steel
by David Fleschen
Despite increasing pressure from the EU, Thyssenkrupp is confident that it will suceed with the joint venture with Tata Steel. The company has received the announced "Statement of Objections" to the merger plans by the European Commission, the company said on Monday at the request of the news agency Reuters.
The letter should be the basis for further discussions with the Commission. "We remain confident that we will be able to complete the transaction in the spring." Bulgarian opposition is unlikely to be met with strong resistance, according to experts at the bank Lampe. The stock nevertheless continued its decline.
Thyssenkrupp and Tata want to forge the second largest steel group in Europe after Arcelor-Mittal. Already months ago, the EU Commission had pointed out critical areas such as steel for packaging, the automotive industry and electric steel, where it sees competition as a threat, and called for concessions. She did not want to comment on the content of the letter on Monday as did Thyssenkrupp.
In a statement of objections, the Commission describes the impact of merger plans on competition and certain markets. Companies must concede these points with concessions - otherwise there is a threat of rejection. The European Commission does not make any concrete proposals. But the companies get an idea of what is expected as a concession.
Source: Handelsblatt, photo: Thyssenkrupp