International Steel Mills
April 2, 2016
Tata Steel and Thyssenkrupp in Talks on European Venture
Written by Sandy Williams
Tata Steel’s exit from the United Kingdom may be a precursor to a merger with Thyssenkrupp. Wall Street Journal reports Tata and Thyssenkrupp have been in high-level talks for more than a year about combining their European steel operations.
Whether the two companies are considering a buyout or forming a joint venture is unclear at this point. With the UK business out of the way, Tata’s major European asset would be the profitable Ijmuiden Works in the Netherlands. The steel plant has an annual crude steel production capacity of 7 million tonnes that is mainly used in automotive, construction and packaging applications.
