An in-depth probe into the proposed creation of a joint venture between Tata Steel of India and Germany’s ThyssenKrupp was launched by the European Union on October 30.
“The European Commission has opened an in-depth investigation to assess the proposed creation of a joint venture by Tata Steel and ThyssenKrupp,” the European Commission said in a statement.
As reported by the Agence France-Presse (AFP), an initial investigation raised possible problems over competition in the supply of certain specialised types of steel, including certain types used for cars, food packaging and engineering products such as electrical transformers.
“At this stage, the commission is concerned that the merger may reduce competition in the supply of various high-end steels.”
ThyssenKrupp (https://www.thyssenkrupp-materials.co.uk) struck the deal with Tata in response to a flood of cheap Chinese steel unbalancing world markets. Bosses hoped the deal, more than two years in the making, would result in €400-500m a year in savings.