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The proposed name of the new company is Thyssenkrupp Tata Steel B.V. It will be focused on the production of high-quality sheet steel, according to a joint statement of the companies. The transaction must be approved by regulatory authorities in several jurisdictions, including the European Union.
The transaction is expected to be completed either in the fourth quarter of this year, or in the first quarter of 2019, depending on the negotiations with the European Commission.
This is the largest transaction in the European steel industry since the acquisition of Arcelor by Mittal in 2006, notes Reuters.
Thyssenkrupp Tata Steel will be the second largest steel producer on the continent after ArcelorMittal. The new company will be headquartered in Amsterdam.
"One company, one balance, one cash flow," said Thyssenkrupp CEO Heinrich Hiesinger on Saturday during a conference with investors.
Most of the cost savings resulting from the merger will take place in the first three years, Tata CEO Kaushik Chatterjee said on Saturday.
Thyssenkrupp expects that about 4 thousand employees in the joint venture will be laid off in order to save money, which is estimated at € 500 million per year. Terms of the job cuts are not specified.
Negotiations on merger of assets lasted more than a year and faced opposition from representatives of trade unions, as well as shareholder activists.
Thyssenkrupp and Tata Steel signed an appropriate memorandum of understanding in September 2017. It was noted that 48 thousand people will work in the united company and in 34 enterprises.
Meanwhile, US President Donald Trump in March signed an order to impose duties on imports of steel and aluminum in the amount of 25% and 10% respectively. Trump states that the tariffs are necessary to protect US national security. However, Canada and the European Union condemned duties as illegal restrictions.
source: bloomberg.com
The transaction is expected to be completed either in the fourth quarter of this year, or in the first quarter of 2019, depending on the negotiations with the European Commission.
This is the largest transaction in the European steel industry since the acquisition of Arcelor by Mittal in 2006, notes Reuters.
Thyssenkrupp Tata Steel will be the second largest steel producer on the continent after ArcelorMittal. The new company will be headquartered in Amsterdam.
"One company, one balance, one cash flow," said Thyssenkrupp CEO Heinrich Hiesinger on Saturday during a conference with investors.
Most of the cost savings resulting from the merger will take place in the first three years, Tata CEO Kaushik Chatterjee said on Saturday.
Thyssenkrupp expects that about 4 thousand employees in the joint venture will be laid off in order to save money, which is estimated at € 500 million per year. Terms of the job cuts are not specified.
Negotiations on merger of assets lasted more than a year and faced opposition from representatives of trade unions, as well as shareholder activists.
Thyssenkrupp and Tata Steel signed an appropriate memorandum of understanding in September 2017. It was noted that 48 thousand people will work in the united company and in 34 enterprises.
Meanwhile, US President Donald Trump in March signed an order to impose duties on imports of steel and aluminum in the amount of 25% and 10% respectively. Trump states that the tariffs are necessary to protect US national security. However, Canada and the European Union condemned duties as illegal restrictions.
source: bloomberg.com
