Thyssenkrupp considers Plan B for European steel
Germany, Frankfurt: According to German weekly WirtschftsWoche, Germany’s Thyssenkrupp has looked at the option of splitting its European steel business into a separate company that could be floated if a merger with Tata Steel assets fails, reports Reuters.
The report said a merger was still the preferred option but that investor pressure could force Chief Executive Heinrich Hiesinger to consider another route.
Thyssenkrupp and Tata have been talking for over a year about merging their European steel units to cut costs and overcapacity, but the plan is complicated by Tata’s huge pension deficit in Britain.
Reuters also cites that Hiesinger told German daily Handelsblatt that the company was prepared to move forward on its own if necessary but would prefer consolidation. He also said that Thyssenkrupp would remain part-owner of the steel business in any merger scenario.