Tata Steel, Thyssenkrupp sign MoU to create European steel major

Tata Steel Ltd and German major Thyssenkrupp AG have signed a memorandum of understanding (MoU) to create Europe's second-largest steel enterprise by combining the flat steel businesses of the two companies. In a statement released on Wednesday, the companies said, “The proposed 50:50 joint venture—Thyssenkrupp Tata Steel—would be focused on quality and technology leadership, and the supply of premium and differentiated products to customers, with annual shipments of about 21 million tonnes of flat steel products.” The deal involves combining Tata’s plants in the Netherlands and the UK with Thyssenkrupp’s German assets and would be managed through a lean holding company based in the Netherlands. This entity will rival Europe’s top producer, ArcelorMittal. The joint venture would have a pro forma turnover of about €15 billion per annum (Rs. 1,15,000 crore). It currently employs about 48,000 people spread across locations and would be headquartered in Amsterdam, the Netherlands.