BUSINESS
ThyssenKrupp is the second-largest producer of flat carbon steel in the European Economic Area while Tata Steel is the third-largest.
The European Commission has said it was forced to block a proposed merger between Indian steel major Tata Steel and German giant ThyssenKrupp over concerns that it would have led to a spike in the metal's prices.
The Commission, the executive arm of the 28-member European Union (EU), formally tabled its decision this week after ThyssenKrupp announced its decision to withdraw from the joint venture plans last month in anticipation of the EU ruling.
"Without remedies addressing our serious competition concerns, the merger between Tata Steel and ThyssenKrupp would have resulted in higher prices. So we prohibited the merger to avoid serious harm to European industrial customers and consumers," said Commissioner Margrethe Vestager, in charge of competition policy at the European Commission.
"Steel is a crucial input for many things we use in our everyday life, such as canned food and cars. Millions of people in Europe work in these sectors and companies depend on competitive steel prices to sell on a global level," she said.
The Commission concluded that under the EU Merger Regulation, a merger between Tata Steel and ThyssenKrupp - to create the second-largest European steel entity behind Lakshmi N Mittal's ArcelorMittal - would have reduced competition and increased prices.
It also felt that the companies did not offer "adequate remedies" to address these concerns.
The decision followed an in-depth investigation by the Commission of the proposed joint venture (JV), which would have combined the flat carbon steel and electrical steel activities of ThyssenKrupp and Tata Steel in the European Economic Area (EEA).
ThyssenKrupp is the second-largest producer of flat carbon steel in the EEA while Tata Steel is the third-largest.
Both companies are significant producers of metallic coated and laminated steel for packaging applications and of galvanised flat carbon steel for the automotive industry.
The Commission said its decision preserves effective competition on European steel markets and the competitiveness of the industry, which employs about 360,000 people in more than 500 production sites in 23 EU member-states.
"It will also ensure that key customer industries, such as the European automotive industry and the packaging industry, continue to enjoy access to key inputs at competitive conditions," the Commission said.
"As a result, consumers in Europe can continue to rely on the affordability of canned food products and the European automotive industry is able to source steel competitively from the EEA and that product innovation in steel is preserved in support of the transition to more climate friendly and environmentally sustainable mobility," it said.
During the investigation, the Commission said it had received feedback from a large number of customers active in the packaging and automotive industries.
These companies depend on competitive steel prices to offer their products to customers at competitive prices and many were worried that the transaction would result in higher prices, it said.
Aware of the Commission's impending decision, the Indian and German companies had announced their respective plans after the proposed JV dating back to June 2018 was abandoned on May 10.
ThyssenKrupp had announced a focus on its elevators business as part of a massive restructuring strategy.
Tata Steel, while admitting that the proposed JV was an important strategic initiative for the company to create a sustainable portfolio in Europe, stressed that it would explore all options to achieve similar outcomes in the future.
"Our strategy is to be the leading and most sustainable flat steel company in Europe with a strong focus on delivering value, especially for our customers, our employees and our shareholders, said Hans Fischer, CEO of Tata Steel's European operations.
"This strategy will continue to guide us and I'm confident we will chart a strong path forward for all our stakeholders," Fischer said.
Steel workers' unions in the UK, where Tata Steel has the country's largest steelworks at Port Talbot in Wales, have urged the Indian company to not make any "kneejerk" decisions on the workforce following the collapse of the merger.
Bank Holidays in November: Banks to remain closed for four days in THESE states, full list here
Mumbai Police arrest Maharashtra woman for hoax death threat to UP CM Yogi Adityanath
Kriti Sanon avoids posing with rumoured boyfriend Kabir Bahia at Mumbai airport, video goes viral
This is world's most expensive house, twice price of Mukesh Ambani's Antilia, it is located in...
SC to hear today Delhi govt's plea against vesting LG with power to appoint...
Viral video: Girl’s sizzling dance to ‘Taareefan’ song earns praise from netizens, watch
Watch: Elderly couple's heartwarming dance at Mohit Chauhan's Patna concert goes viral
This is India’s most expensive wedding card, made from real gold and silver, it costs Rs…
Viral video: Men’s mid-air stunt, twerk on Mumbai local train leaves netizens in splits, watch
Kartik Aaryan reveals details about his new 'girlfriend': 'Her name is...'
Delhi pollution: Air quality worsens in capital, AQI worst in India at...
Singham Again movie review: Ajay Devgn, Akshay Kumar, Ranveer Singh's high octane actioner
Pune: 35-year-old man killed by speeding car while bursting firecrackers on Diwali, video surfaces
Shah Rukh Khan makes BIG revelation on his birthday, says he has quit...
‘Against the principles of…’: Vijay-led TVK passes resolution against One Nation One Election
Watch: Two Delhi traffic police personnel dragged for 20 metres, case filed
Delhi-NCR pollution: Targeted measures enforced under GRAP for 16 days from...
AUS vs PAK Live Streaming: When and where to watch Australia vs Pakistan 1st ODI in India?
Viral video: Man casually lies on Delhi metro floor, leaves netizens divided
'No justification for..' J-K CM Omar Abdullah reacts to Srinagar terrorist attack
Who is Sunil Lulla, on whom Sebi imposed Rs 5000000 fine for violating market norms?
This bank's UPI services will NOT work for two days in November due to...; check details
Arjun Kapoor's Ravana overpowers Ajay Devgn's Rama in Rohit Shetty's Ramayana-inspired Singham Again
Shah Rukh Khan spotted wearing one of the most expensive watches in the world, it costs Rs...
Delhi Pollution: National capital's PM 2.5 Levels 13% higher than previous Diwali, reports suggest
J-K: Five injured after terrorists attack Srinagar weekly market with grenades
Mukesh Ambani's Reliance earns Rs 15393 crore during festive season, market cap reaches Rs...
This city that gives maximum number of IAS officers, its not Mumbai, Kolkata, the UPSC hub is...
Priyanka Gandhi Vadra's emotional message for people of Wayanad: 'When my brother was facing...'
Margot Robbie welcomes baby boy with husband Tom Ackerley
How can India qualify for WTC final after humiliating whitewash against New Zealand
Deepika Padukone-Ranveer Singh's baby girl has Sania Mirza connect, Bollywood couple reveals....
Bigg Boss 18: THIS actor replaces Salman Khan, to host reality show for...
WTC 2023-25 points table update after New Zealand's historic Test series win over India
IND vs NZ test: India lose against New Zealand by 25 runs, lost test series at home after…
'Vibe hai': Indonesian siblings 'Dilbar' rendition leaves Big Boss fame amazed
IND vs NZ test: Recap of BGT? Rishabh Pant last hope as India close to whitewash at home after...
Rajpal Yadav loses his cool, snatches journalist's phone, SHOCKING video goes viral
Warch: Land Rover bitten by Hippo, tourists witness intense faceoff as..., video goes viral
Fake IPS officer's epic dance to Bhojpuri song takes internet by storm, watch viral video
WI vs ENG: Shai Hope goes past Babar Azam, Virat Kohli in elite list with 17th ODI century
'If he doesn't resign...': Mumbai police receives threat call for UP CM Yogi Adityanath
IPL 2025: KKR CEO reveals reason that led to Shreyas Iyer's exit from franchise
HM Amit Shah releases BJP's 'Sankalp Patra' for Jharkhand assembly polls
Aishwarya Rai Bachchan recalls when she was announced Miss World 1994: 'We had rehearsals for...'
Drunk UP man call police over 250 grams missing potatoes, demands...,WATCH
Kartik Aaryan says somebody scratched him on the sets of Bhool Bhulaiyaa 3, he asks ‘if it was…’
Kiran Rao says Aamir Khan knows 'nothing' about son Azad's school: 'When we were married, I was...'
Trouble for Anil Ambani: SEBI issues demand notice of Rs 1540000000 over...
Nvidia to replace rival Intel in Dow Jones indices by November 8
Isha Ambani Vs Eiesha Bharti Pasricha: Know their net worth, college, academic qualifications
Salman Khan remembers designer Rohit Bal, says...
Bigg Boss 18: Salman Khan's Weekend Ka Vaar timing changed, details inside
Bhai Dooj 2024: Date, shubh muhurat, timings, rituals, significance
Delhi AQI touches 400: Many times over WHO limit, pollution in 'severe' category
Aishwarya Rai Bachchan says she rejected Shah Rukh Khan's film because Abhishek Bachchan wasn't...
Four children among six injured in attack on Gaza vaccination centre
IIT students launch dustbin in air using firecracker, WATCH viral video
Happy Bhai Dooj 2024: Top 50 wishes, What'sApp messages, quotes to share with your loved ones
IND vs NZ: Shubman Gill surpasses Cheteshwar Pujara in elite WTC list led by Rohit Sharma