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EU’s Top Court Upholds Antitrust Veto on Thyssenkrupp-Tata Steel Deal

By  |  October 6, 2024
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The European Court of Justice (CJEU) has dismissed Thyssenkrupp’s appeal against the European Union’s decision to block its proposed joint venture with Tata Steel. The German industrial giant had aimed to form a partnership that would have created Europe’s second-largest steelmaker, a move seen as an effort to address overcapacity and mounting challenges in the steel sector.

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    According to Reuters, the CJEU, based in Luxembourg, fully sided with the European Commission, the EU’s competition watchdog, in its decision to block the merger. The Commission had expressed concerns that the joint venture could lead to higher prices for steel products, an outcome it deemed harmful to competition.

    Thyssenkrupp, reacting to the decision, issued a statement saying it would carefully review the court’s ruling. The company, however, stood by its earlier position, arguing that the European Commission’s assessment failed to consider the broader difficulties facing the steel industry.

    Read more: Germany Approves Sale of Thyssenkrupp Stake to Czech Billionaire

    “In view of the difficult situation in the European steel industry, we do not consider as appropriate the standards applied by the European Commission to assess impairments of effective competition,” the company said.

    Per Reuters, Thyssenkrupp has been actively trying to offload or merge its steel division for several years, and this latest legal setback is another blow to its strategic efforts. Despite the court ruling, the company remains committed to exploring other options, including a potential 50:50 joint venture with Czech billionaire Daniel Kretinsky.

    The original plan with Tata Steel, proposed over five years ago, was part of a broader industry consolidation effort as the European steel market faced growing global competition, sluggish demand, and environmental pressures. However, the Commission blocked the deal, citing concerns about potential anti-competitive effects, particularly in the markets for automotive steel and packaging materials.

    Source: Reuters