Tata Steel is disappointed that the merger of its European activities with those of ThyssenKrupp is canceled. The Indian company points an accusing finger at policymakers in Brussels. Despite additional efforts by companies to remove competition concerns, the European Commission is not expected to agree. The towel was then thrown into the ring.
Tata Steel again emphasized the importance of a successful merger of the divisions. After the European deal, the attention of the Indian company could go entirely to the home market. Tata wants to grow further in India, among other things through capacity expansion and acquisitions. The failure of the merger can hamper growth in India.
The steel group earns approximately two thirds of its money in its own country. In Europe, costs, such as for wages and CO2 emissions, are relatively high, while the steel market is largely saturated. A merger on the continent therefore had to provide cost benefits. In addition, the Indians wanted to reduce the debt burden with the merger.
In the short term, the company will present its strategy for European activities, including the production location in IJmuiden. Tata says there are several options, but does not want to go into potential future plans specifically.
“We have to go back to the drawing board,” said the company, “but not all options necessarily require intensive negotiations with the European Commission.”