The logos of Thyssenkrupp and Tata Steel. (Reuters)
The logos of Thyssenkrupp and Tata Steel. (Reuters)

Thyssenkrupp, Tata on collision course with Europe over joint venture: Sources

  • Two of the people said the groups would argue that remedies in the areas of electrical and galvanised steel were not needed
  • A spokesman for Thyssenkrupp said the company was in constructive talks with the Commission

Thyssenkrupp and Tata Steel will not go very far in concessions to gain approval for a planned steel venture, four people familiar with the matter said, adding their offer might not be enough to satisfy the European Commission.

The two companies last year struck a landmark deal to combine their European steel units to create the continent's second-largest steelmaker after ArcelorMittal, a move that must be cleared by the European regulators.

While Thyssenkrupp and Tata Steel are working on a remedy package, they are unlikely to make far-reaching concessions, three people familiar with the matter said, increasing the risk of a lengthy tussle with the Commission.

Two of the people said the groups would argue that remedies in the areas of electrical and galvanised steel were not needed.

A spokesman for Thyssenkrupp said the company was in constructive talks with the Commission and that it remained confident that the transaction could be completed in the spring. Tata Steel was not immediately available for comment.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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