“We will create a highly competitive European steel player – based on a strong industrial logic and strategic rationale. We will secure jobs and contribute to maintaining value chains in European core industries,” said Dr. Heinrich Hiesinger, CEO of thyssenkruppAG following the signing of a definitive agreement to combine the European business of the company with that of Tata Steel in Europe.

A Memorandum of Understanding was signed in September 2017 to form a 50/50 joint venture company in Europe – and now it’s happening. The new company will be called thyssenkrupp Tata Steel BV and, according to Tata Steel’s chairman Natarajan Chandrasekaran. He said that the joint venture will create a strong pan European steel company that is structurally robust and competitive. “This is a significant milestone for Tata Steel and we remain fully committed to the long-term interest of the joint venture company. We are confident that this company will create value for all stakeholders,” he said.

According to Tata Steel Europe, the new company will be positioned as a leading supplier of high-quality flat steel with a strong focus on performance, quality and technology leadership.

Until closing, thyssenkrupp Steel Europe and Tata Steel in Europe will continue to operate as separate companies and as competitors. Only after closing, thyssenkrupp Steel Europe and Tata Steel in Europe will be integrated as one company.

Following the signing, the next step is a regulatory review. The agreement will be sent to the relevant competition and antitrust authorities before the proposed JV can officially begin. Once approved, the new company will be formally established and a step-by-step process of integration will begin.

Once formed, the new company will be based in the Netherlands.