Economy

Clouds over Tata Steel UK plant after merger collapse

Clouds over Tata Steel UK plant after merger collapse”

The Tata Steel-Thyssenkrupp joint venture, which had sought to blend the steel assets of the two European giants in the game, teetered on the brink of collapse after the European Commission refused to clear the merger until the two partners improved upon their original offer to divest assets.

Having shelved the merger plans and ruled out offering more concessions to Brussels in order to get a green light, Thyssenkrupp said it was now aiming for a stock market listing of its elevators business.

"Under these conditions, a separation is no longer the best solution for Thyssenkrupp".

Shares in Thyssenkrupp AG traded nearly 18% higher on the news. At the beginning of April, Thyssenkrupp and Tata Steel submitted a range of proposals in the competition Commission. "The remedies offered were developed considering the overall industrial strategy for the proposed joint venture, the integrated and complex nature of the supply chain to service customers and the need to build a sustainable business that would be able to endure the structural challenges faced by the European steel industry", it said.

Under Kerkhoff's original blueprint, Thyssenkrupp Materials was due to hold a 30 percent stake in Thyssenkrupp Industrials.

"It is clear that Thyssenkrupp's strategy of the past has failed", Cevian founding partner Lars Foerberg said.

"It's vital that the business is kept intact and the right steps are taken to safeguard jobs and continue investment to ensure a sustainable future", he added.

The merger would have created Europe's largest steel maker and was meant to cut costs, giving the combined company a better chance of competing with cut-price global rivals. It also expects a net loss for the year, the statement added.

Its dividend has remained stagnant at 0.15 euros per share since 2014/15.

On the other hand, Thyssenkrupp is planning to restructure its businesses different and is likely to spin-off its elevators business and list it has a separate entity following an IPO.

However, the Tata chief said he was "concerned" about increasing energy costs in the UK. In the course of the realignment of the group wants to reduce to 6,000.

However, rising trade tensions between the USA and China and fears of a disorderly Brexit have dented share prices, forcing a number of companies, including Continental and Volkswagen, to review plans for spin-offs and listings.

Thyssenkrupp said it now expects to post adjusted earnings before interest and tax of 1.1 billion euros to 1.2 billion euros, and to post negative cashflow in the high three-digit million euros range for the 2018/2019 year.



Like this

loading...
loading...

Latest


13 May 2019
Almost 900 child soldiers freed from armed group in north
The UN Special Representative for Children and Armed Conflict, Virginia Gamba , welcomed the latest release from the CJTF. The 894 children , released at a ceremony in the north-eastern town of Maiduguri, were aged between 13 and 19.

13 May 2019
India orders anti-trust probe of Google for alleged Android abuse
It also found Google had put its commercial flight search function in a prominent position on the search results page. In each case, Google had to make several concessions regarding Android .

13 May 2019
Kiki Bertens Beats Simona Halep to Win Madrid Open
I played some good tennis and will be number four in the world on Monday, it is just all incredible things", Bertens added. Last year's runner-up Bertens defeated Halep for her second title of the year, adding to her victory in St.

13 May 2019
End to deal looms trump’s Iran policy put to test
He said that the American deployment in the Gulf was an attempt to exert political pressure on Tehran to force it to negotiate. The MP also said the Iranian government was not going to contact President Donald Trump's administration to engage in talks.

13 May 2019
Will Motorola's upcoming phone dump Snapdragon for Samsung Exynos?
The device will come in Blue and Bronze colour options and will be bundled with the Motorola Verve earbuds as an early-bird offer. WinFuture says that the Motorola One Vision will be available for purchase from May 16th in Europe, and has been priced at €299.

13 May 2019
Tati Says "Bye Sister"
Westbrook has been a fan favorite for years, but the level of support she has received is unprecedented. From the time that I met him when he was 17. "He is a danger to society ", Jeffree claimed.

13 May 2019
CJ McCollum Drops Game 7 Franchise Record!
I got it out the mud, I went to Lehigh University. "I was just back-pedaling and got hit from behind and hyperextended my kneee". The Portland Trail Blazers held off their elimination on Thursday night with a 119-108 win over the Nuggets , forcing a Game 7.

13 May 2019
Dogfish Head Merges With Boston Beer Co
The transaction is expected to close late in the second quarter of 2019, subject to customary closing conditions. A copy of the definitive transaction agreements will be filed with the Securities and Exchange Commission (SEC).

13 May 2019
Kawhi Leonard gets friendly bounce on thrilling winning shot
The 76ers are reportedly contemplating firing coach Brett Brown should he not lead the team to the NBA Finals this year. Receive comprehensive coverage of your teams and stream the Flyers, Sixers and Phillies games easily on your device.

13 May 2019
Symantec CEO Greg Clark resigned amid sales drop
Analysts on average expected Symantec to report adjusted earnings of 39 cents a share on sales of $1.21 billion. As a company moves up the chain to "hunt elephants", Hill said that can result in a thinning out of the herd.