Friday, 29 June 2018

Tata Steel and ThyssenKrupp are close to agreeing terms on a merger



Tata Steel and ThyssenKrupp are close to agreeing terms on a merger that will create Europe's second-biggest steelmaker, after Arcelor Mittal.

 
Senior City sources said the deal - which has been under negotiation for more than a year - could be concluded in the next few days.


It will see Tata Steel's UK plants merged into a pan-European venture with annual sales of about £13bn.


These include the politically sensitive Port Talbot works in Wales.


Talks have been held up while the future of Tata Steel's enormous pension scheme - which includes the former British Steel retirement plan - was decided.
Three months ago, the pensions regulator approved the creation of a new pension fund after Tata agreed to a £550m top-up.


More recently, ThyssenKrupp has faced pressure from shareholders to secure better terms from Tata.


Elliott Management, the aggressive New York hedge fund that has emerged as a key player in big European takeover battles, recently wrote to Thyssen's board saying that Tata's recent financial results did not warrant it receiving a half-share in the combined business.





BBC       News.