Tata Steel looking at European joint venture with ThyssenKrupp

Agence France Presse
Business Secretary Sajid Javid

LONDON: India’s Tata Steel said it had entered discussions with industry players including Germany’s ThyssenKrupp over a possible joint venture for its European operations, as a potential alternative to selling off the UK business.
The news came as Tata Steel was set to hold a board meeting in Mumbai on Friday, and Britain’s Business Secretary Sajid Javid is expected to fly to India to meet the board.
Tata Steel has been considering seven bids for Tata’s UK assets, which were put up for sale in March because of a global oversupply of steel, cheap imports into Europe, high costs and currency volatility.
But it said continuing questions over pensions and the “uncertainties” caused by Britain’s vote to leave the EU had caused it to look at “alternative and more sustainable portfolio solutions for the European business.”
“Tata Steel has now entered into discussions with strategic players in the steel industry, including ThyssenKrupp AG,” the company said in a statement.
“Discussions have been initiated to explore the feasibility of strategic collaborations through a potential joint venture.
“However, the talks are currently at a preliminary stage and there can be no certainty of a transaction as the outcome depends on consultation and negotiations with various stakeholders.”
Britain’s government has been racing to help find a buyer and save around 12,000 jobs, including at the Port Talbot steelworks in Wales, the country’s biggest steel plant.
Tata said it would also begin separate processes for the potential sale of the Speciality Steels business in northern England and the Hartlepool pipe mills.
“Both of these operations are largely independent of the strip products supply chain with their own specific characteristics,” said Koushik Chatterjee, group executive director and Tata Steel’s executive director for Europe.
“Tata Steel UK has already received interest from several bidders for Speciality Steels and the pipe mills in each case and a formal process will be commencing shortly.”