The steel merger between Thyssenkrupp and the Indian competitors, Tata has not reached the expected. We expect that the EU-Commission informed of the merger under the forecast, Thyssenkrupp on Friday. There are “continuing concerns of the Commission,” it was said in the message of Thyssenkrupp for the justification. Both companies wanted to make no new Commitments or improvements, because otherwise the desired synergy effects would be severely affected.
The merger was seen as a core part of the planned group restructuring of the group. The two partners had decided divisions, after long negotiations, in June 2018, the merger of its European Steel. In the new company, based in the Netherlands, Thyssenkrupp should only hold a stake of 50 percent.
the merger would be Europe’s second largest steel group with approximately 48 000 employees and plants in Germany, the UK and the Netherlands emerged. Objective of ThyssenKrupp, it was to say goodbye to the highly volatile steel business to a large extent. Are expected to be annually recurring savings in the amount of 400 to 500 million euros.
However, the project was subject to clearance by the competent competition authorities. The EU competition authority assessed the transaction for months in detail. Especially in the steel and subcontracting to the automotive industry, it could lead to adverse effects on competition, it said.
The company tried to convince the competition authorities with concessions from the merger. At the beginning of April, Thyssenkrupp and Tata Steel submitted a package of proposals to the competition Commission. The inspection period was to last until the 17. June extended.
following the merger, the split-up of Thyssenkrupp into two independent companies was planned. One of them should contain the 50-percent share from the merger of steel business with the Indian Partner Tata. Add to this the trade with materials, as well as naval shipbuilding. In the second company, for example, elevators and supplies for the auto industry bundled.