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Tata Steel says still in European merger talks with Thyssenkrupp

LiveMint logoLiveMint 06-03-2017 Shailaja Sharma

Mumbai: Tata Steel Ltd said on Monday that it remains in “constructive discussions” with Germany’s Thyssenkrupp AG for a potential merger of the two companies’ steel businesses in Europe.

There can, however, be no assurance that the discussions will result in a transaction, Tata Steel said in a BSE filing on Monday. The statement comes a day after The Sunday Times of the UK reported that Tata Steel could break off the merger talks.

The paper reported that the deal, which has been slow to progress, could be called off due to German pension liabilities. (bit.ly/2lNKLZK)

Thyssenkrupp did not immediately respond to an email query sent on Monday morning.

Tata Steel had a year ago decided to put its entire UK business on sale in the face of a slump in steel demand and prices, but the plan hit a roadblock due to uncertainty stemming from Britain’s decision to exit the European Union (EU).

The group eventually halted the sale process in July in favour of discussions for a joint venture with “strategic players in the steel industry, including Thyssenkrupp AG”. But the talks have not yet led to a transaction.

Both companies have maintained that the discussions would not necessarily lead to a transaction.

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