EU warning for Thyssenkrupp and Tata Steel

EU antitrust regulators could veto Thyssenkrupp and India’s Tata Steel planned European steel joint venture.

The European Commission is expected to send a charge sheet known as a statement of objections to the companies. Such documents set out serious competition concerns which companies have to address with specific concessions or see their deal blocked.

Thyssenkrupp said it was the group’s understanding that such a statement would be sent by the European Commission in the course of the week, adding this was previously expected and would serve as the basis for further talks.

“As soon as the statement of objections has arrived we will thoroughly examine the Commission’s arguments,” a spokesman for Thyssenkrupp said, adding the group continued to be confident that the transaction could be closed in early 2019.

The joint venture, announced in June last year, is the biggest shake-up in Europe’s steel industry in more than a decade. To be named Thyssenkrupp Tata Steel, the entity will have around 48,000 workers and about $19.2 billion in sales.

Source: Reuters