The European Commission announced that it was investigating whether a planned joint venture between Indian steelmaker Tata Steel and Germany’s ThyssenKrupp could reduce competition in the high-end steel sector.
Tata Steel and ThyssenKrupp are major producers of flat carbon steel and electrical steel with significant production facilities in Germany, the Netherlands, and Britain, the New York Times reported.
The proposed joint venture would combine their European carbon steel and electrical steel businesses and the Commission stated that this raised concerns over their dominance in steel for cars, metallic coated steel for packaging, and grain-oriented electrical steel.
“The Commission is concerned that, following the transaction, customers would face a reduced choice in suppliers, as well as higher prices,” an EU executive said in a statement.
“These customers include various European companies, ranging from major corporations to numerous small and medium-size enterprises,” the executive said.
Full Content: Economic Times & New York Times
