ThyssenKrup, the leading German steel company, and Tata, the Indian manufacturer, are preparing for their wedding in Europe. The two groups announced that they have signed a memorandum of understanding which plans to merge their activities in the steel sector in Europe.
If the deal goes through, it will create the region's second largest producer after ArcelorMittal.
The memorandum envisages a 50/2018 joint venture which should be finalized in 400 and envisages annual synergies of between 600 and 4.000 million euros. However, the new union will lead to a drastic cut of 15 jobs. The new company, headquartered in the Netherlands, would have pro forma sales of about 21 billion euros, about 48.000 million tons of steel shipments each year and about 34 employees at XNUMX sites, Thyssenkrupp said. Under the agreement, the companies will have equal representation on management and supervisory committees.
