Thyssenkrupp Tata Steel has reached the final agreement for the merger

The German giant Thyssenkrupp concluded the final agreement for the merger of its iron and steel business with the Indian Tata, thus creating the second largest European steel industry after ArcelorMittal, in order to face the competition of the Chinese steel. The 50% joint venture, which will be called "Thyssenkrupp Tata Steel", will be based in the Netherlands. The merger, which took place after more than two years of negotiations, should lead to savings of 400 to 500 million euros per year.

The new group will have 48,000 employees at 34 sites, producing around 21 million tonnes. Thyssenkrupp and Tata previously warned that the merger would have resulted in a reduction of around 4,000 jobs in both production and manufacturing. administration, divided equally between two companies. Last December, Thyssenkrupp offered guarantees against dismissals and site closures to the German union IG Metall.

The German Thyssenkrupp and the Indian Tata have defined the merger agreement in a 50/50 joint venture

Thyssenkrupp and the Indian Tata have defined the agreement of merger into a 50/50 joint venture, based in the Dutch region of Amsterdam, respective European activities in the steel sector. A definitive agreement that materializes the memorandum of understanding signed in September 2017 "to create a European steel champion", second group of the sector after ArcelorMittal. It will have the synergy drive for 400/500 million, is an answer to the " challenges of the European steel industry " which deploys a "solution to create significant value-added". about 5 billion euros "- as Thyssenkrupp CEO underlines, although" exploiting the cost synergies will require a rationalization of the workforce in the next years up to 4000 places », About half in Germany, in a group that will have about 48,000 employees (including Germany, United and Holland): it is an impact that will be" shared equally between the two parties ".

Both groups explain that they have "successfully completed" the negotiations

Both groups explain that they have "successfully completed" "Negotiations with unions and related consultations. Ast di Terni steelworks should not be included in the agreement: for Thyssenkrupp, which announced it last November, is an badet to sell. "Thyssenkrupp Tata Steel & (Is the name that will take the new company) was born already looking at a possible IPO, and also as a tool to rebalance "with adequate compensation" the difference in value of the activities conferred by the two groups. with the prior agreement of last September: to do this, the final agreement grants ThyssenKrupp the sole discretion to decide the moment of a possible hypothesis of the new joint venture and provides that the German group will receive a bigger p art of the product of the investment ("reflecting an economic ratio of 55/45")

Thus, commented the CEO of ThyssenKrupp, Heinrich Hiesinger "we create a highly competitive European player, based on a logic strong industrial and strategic logic.

Will help to secure jobs and value chains in the "core" of European industry, with a focus on "common synergies that can not be achieved in an independent scenario" and " for both partners, participation in the joint venture represents a significant increase in value. "While the Indian director Natarajan Chandrasekaran president of Tata Steel points out that" the jv He will create a strong, structurally sound and competitive European steel company – it is an important step for Tata Steel, "he said, underlining the" long-term "commitment in a company that" will create value for all parties involved. "The operation must now wait for antitrust clearances, expected in the year.

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The German Thyssenkrupp and the Indian Tata have defined the agreement for the merger into a 50/50 joint venture, based in the Dutch region. Amsterdam, respective European steel companies. A definitive agreement that materializes the memorandum of understanding signed in September 2017 "to create a European steel champion", second group of the sector after ArcelorMittal. It will have a spurt of 400/500 million synergies, is a response to the "challenges of the European steel industry" that proposes a "solution to create a significant added value of about 5 billion euros" – as the CEO of Thyssenkrupp points out, even if " exploit the cost synergies will require a rationalization of the workforce in the coming years up to 4000 posts ", approximately half in Germany, in a group that will have about 48 thousand employees (including Germany, United and Holland): it is an impact that will be "shared equally between the two parties".

The two groups explain that they have "completed" negotiations with the unions and their consultations. The Ast di Terni steelworks should not be included in the agreement: for Thyssenkrupp, which announced it last November, it is an badet to sell. & # 39; Thyssenkrupp Tata Steel & # 39; (is the name that will take the new company) was born already looking at a possible IPO, and also as a tool to rebalance "with adequate compensation" the difference in value of the activities conferred by the two groups. following the prior agreement of last September: to do this, the final agreement exclusively grants ThyssenKrupp the opportunity to decide the moment of a possible hypothesis of the new joint venture and provides that the German group will receive a larger portion of the investment proceeds ("reflecting an economic ratio of 55/45")

ThyssenKrupp's CEO, Heinrich Hiesinger

Thus, says ThyssenKrupp's CEO, Heinrich Hiesinger, "we are creating a European player highly competitive, based on a strong industrial logic and strategic logic, it will help secure jobs and value chains in the "core" of European industry; focuses on "common synergies that can not be achieved in an independent scenario" and "for both partners, participation in the joint venture represents a significant increase in value".

While Indian Director Natarajan Chandrasekaran, President of Tata Steel, points out that "It will create a strong, structurally sound and competitive European steel company, which is an important step for Tata Steel," he said. he said, stressing the "long-term" commitment in a company that "will create value for all involved parties." The operation must now wait for antitrust clearances, expected in the year .