European Commission had raised concerns over the joint venture plans between Tata Steel Ltd and Thyssenkrupp pertaining to the chances of increase in prices and competition being harmed after the two announced their plans earlier this year. However, Tata Steel announced this Wednesday that it will continue discussions with the Commission.
The venture will help them become the continent’s largest steel maker after ArcelorMittal once they combine their steel activities in Germany, the Netherlands and Britain.
The company gave a statement addressing the concerns and said that while the discussions are ongoing, Tata Steel will provide further information and analysis in relation to sectors that have been identified to secure approval for the joint venture.
Three areas including steel for the automotive sector, metallic coated steel for packaging ad grain- oriented electrical steel; have been identified by the EC which they revealed on Tuesday; explaining that a combination of both companies’ specialty flat carbon steel and electrical steel products would give them a monopoly position.
A further fall from 6.2% to 3.2% was seen in the shares of Tata Steel.