The merger between Tata Steel and Thyssenkrupp hailed by the unions

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The unions welcomed a merger between Tata Steel and Thyssenkrupp which will create the second largest steelmaker in Europe

The agreement will mean that the British factories of Tata are merged into a pan-European enterprise comprising the biggest mills in the United Kingdom.

Tata stated that his "ambition" was not to have compulsory layoffs in the UK as part of the joint venture.

The metalworkers' union said the agreement could guarantee jobs and investments. Community Secretary Roy Rickhuss said he had "the potential to save jobs and the steel industry for a generation".

But he also warned that the company would only succeed if there was a strategic investment. ] Thyssenkrupp's German-owned supervisory board has given the green light to Friday's merger – the two companies have been in talks for more than a year.

They employ about 48,000 workers

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The merged group predicts cost savings of £ 350 to £ 440 million a year

When the details of an initial agreement emerged in Last September, both parties said they expect about 4,000 jobs. the merger, half of the administration and half of the production.

In Wales, nearly 7,000 people are employed by Tata, including at Deeside and more than 4,000 at Port Talbot.

Tata had announced in 2016 that she wanted to sell Tata: Turbulent Year for the British Steel Industry

While welcoming the agreement, the unions also wanted the company to sell the goods. we put an end to the uncertainty for the workers

. Agent Tony Brady said the workers had "made great sacrifices to secure a future for Tata Steel."

"We will seek employment and investment guarantees for British joint venture operations to secure the future of British steel." He added.

Ross Murdoch, GMB national officer, echoes his comments

"Important Step"

Heinrich Hiesinger, managing director of Thyssenkrupp, has already stated that both companies need to consolidate and become more efficient due to the increasing pressure of imports. and overcapacity within the industry.

More recently, European steelmakers faced tariffs of 25% on their largest market, the United States.

"The joint venture with Tata Steel marks an important step in the transformation of Thyssenkrupp into an industrial and services group.The group said in a statement

that the" signature of the definitive agreement is expected shortly "and that the agreement would be subject to authorization in several jurisdictions." Natarajan Chandrasekaran, President of Tata Steel, said: "This is an important step for Tata Steel and we remain fully committed to the long-term interest of the joint venture

.We are confident that this venture will create value for all stakeholders. "

The company will create the second largest company in Europe after Arcelor Mittal.

The new company, called Thyssenkrupp Tata Ste el, would have annual sales of around £ 13bn and be based in the Netherlands.