Frankfurt: Thyssenkrupp AG and Tata Steel Ltd could sign a memorandum of understanding on merging their European steel businesses within weeks, German business monthly Manager Magazin reported on Friday, citing insiders.

Valuations are being discussed, along with the question of whether Tata would make a payment to Thyssenkrupp—whose European steel business is larger—in the event of a 50-50 venture, the magazine reported.

Neither Thyssenkrupp or Tata had an immediate comment on the report. Reuters