Tata Steel in Talks for Possible European Joint Venture
July 08 2016 - 3:10PM
Dow Jones News
LONDON—Tata Steel Ltd. is in talks with Germany's Thyssenkrupp
AG and other steel industry firms as part of the company's plan to
find a better alternative for its European businesses, the company
said Friday.
The Mumbai-based company, which is one of Europe's largest
steelmakers by production capacity, said it initiated discussions
with other strategic players in the industry, such as engineering
conglomerate Thyssenkrupp, to explore the feasibility of strategic
collaborations through a potential joint venture.
The potential tie-up "offers the best prospects to create a
premium, world-class strip steel business with the scale and scope
of capabilities to compete successfully on the global stage," said
Koushik Chatterjee, Tata Steel's Executive Director for Europe.
In April, Tata Steel formally announced that it wanted to sell
its U.K. operations, citing severe funding problems, a global glut
of steel and high manufacturing costs. The company said seven
expressions of interest for the unit were advanced to the next
stage of a possible sale process.
Tata Steel said the bids were reviewed in the light of the
uncertainties caused by the U.K. referendum and the outcome of the
U.K. Government's consultation on the British Steel Pension
Scheme.
Mr. Chatterjee said the success of the joint-venture talks, if
the U.K. operations were included, would depend on "finding a
suitable outcome for the British Steel Pension Scheme, successful
discussions with the U.K. trade unions and the delivery of policy
initiatives and other support from the Governments of the U.K. and
Wales," among other issues.
Write to Alex MacDonald at alex.macdonald@wsj.com and Razak
Musah Baba at Razak.Baba@wsj.com
(END) Dow Jones Newswires
July 08, 2016 14:55 ET (18:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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