10 May 2019; DW: The planned merger between German steel giant Thyssenkrupp and its Indian competitor Tata will likely fall through because the European Commission is expected to block the deal.
German steel giant Thyssenkrupp on Friday announced that it was putting the brakes on a merger with Indian competitor Tata.
"Thyssenkrupp and Tata Steel expect that the planned joint venture of their European steel activities will not go ahead due to the Commission's continuing concerns," the German company said in a statement.
The executive board of Thyssenkrupp has said it will reassess the "strategic options for the company," including, among other things, a "leaner holding structure."
The Executive Board also intends to propose to the Supervisory Board that Thyssenkrupp's elevator business be floated on the stock market.
Company split
Thyssenkrupp announced plans to divide the concern into two companies last year.
Thyssenkrupp Industrials was to become a pure capital goods company and consist of three units — the elevator business, the automotive supplier business and core plant engineering.
Thyssenkrupp Materials was to become a materials group combining steel and stainless steel production, materials trading and steel-related processing.
The Group now expects adjusted Earnings Before Interest and Taxes (EBIT) of between €1.1 and €1.2 billion, which includes the steel division, in the financial year 2018/19. All in all, Thyssenkrupp will probably operate at a loss this year.
