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Germany: Tata Steel merger delayed

By  |  April 12, 2018

The merger between British Tata Steel and German company Thyssenkrupp will be delayed because of negotiations with Tata’s UK and Dutch workers.

Boards at both companies were expected to decide on the venture by the end of June, Thyssenkrupp said. Tata employs 7,000 people across Wales including at Shotton and the UK’s biggest steelworks, Port Talbot.

The companies have argued that a merger would make them more competitive and efficient. Both face a challenging world market where the production of steel far outstrips demand.

While negotiations continue between Tata and unions, Thyssenkrupp has already secured the approval from German union members on conditions that pave the way for the merger. “With the planned joint venture Thyssenkrupp achieves a key prerequisite for a sharpening of the group’s strategic target and subsequently also the financial targets,” Thyssenkrupp announced in a statement.

Full Content: VCCircle

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