Thyssenkrupp Tata Steel European steel joint venture

Overview:

• German steel maker Thyssenkrupp and Indian Tata Steel have agreed to form a new European joint venture.
• The deal will see the two companies merge their European steel businesses through a 50-50 joint venture called Thyssenkrupp Tata Steel. 
• The new venture, based in the Netherlands, is expected to be finalised at the beginning of 2018.
• The deal will combine Tata's assets in the Netherlands and the United Kingdom with Thyssenkrupp’s in Germany.
• The deal is expected to create synergies of between €400-600 million and will have a combined workforce of 48,000 though according to Bloomberg the companies have admitted that 4000 jobs could be at risk.
• The deal will allow the companies to compete with ArcelorMittal, which is currently Europe's largest steel maker, and protect them from the current instability in the steel market.
• Immediately following the announcement shares of Thyssenkrupp rose 5.3%, while Tata Steel's rose 1.7%.

Sam Duke - Editor