By Anthony Shevlin

Thyssenkrupp AG (TKA.XE) said late Friday that its board approved its joint venture with Tata Steel Ltd (500470.BY).

The German industrial giant said that in the event of an initial public offering of the joint venture, it will receive a higher share of proceedings, reflecting an economic ratio of 55 to 45.

"Due diligence and independent expert opinions have confirmed the economic viability of the new company and the expected annual recurring synergies of 400 million euros ($467.2 million) to EUR500 million," Thyssenkrupp said.

Thyssenkrupp expects the joint venture to improve the German company's financial figures, effective with closing.

Thyssenkrupp said the signing of the definitive agreement is expected shortly and is subject to merger control clearance.

Write to Anthony Shevlin at anthony.shevlin@dowjones.com

(END) Dow Jones Newswires

July 02, 2018 01:06 ET (05:06 GMT)

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