ThyssenKrupp sees the possibility of a European agreement on Tata Steel agreement

DUESSELDORF, Germany (Reuters) – ThyssenKrupp said on Sunday that it was still possible to reach an agreement with European regulators of competition on a joint venture project with Tata Steel, despite a report the Financial Times that Brussels was likely to block the deal.

Tata Steel and ThyssenKrupp proposed to combine their iron and steel activities in Europe to form the second largest steelmaker in the region. However, the historic agreement has not yet been approved due to concerns over its impact on competition.

Earlier on Sunday, the Financial Times had announced that EU antitrust regulators feared that the deal would result in less choice and higher prices for steel and that it would be cheaper. it is more and more likely to block it unless companies offer larger concessions.

A spokesperson for ThyssenKrupp said: "The Competition Commission has taken the reworked commitments proposed by ThyssenKrupp and Tata Steel as an opportunity to conduct another market test."

"There are still a number of ways to adjust our commitments without compromising the business logic of the joint venture."

At the end of last month, the European Commission has extended the time limit for consideration of the proposed joint venture from seven working days until 17 June.

ThyssenKrupp said further talks are planned with European Commissioner for Competition Margrethe Vestager in the coming weeks.