Friday, April 1, 2016

Insider – ThyssenKrupp talks with Tata about steel division – Reuters Germany

Dusseldorf ThyssenKrupp and Tata Steel are, according to an insider in talks over the future of its European steel business.

This lasted already for some time, a person familiar with the process said on Friday person told Reuters. The “Rheinische Post” had previously reported that negotiations are at an advanced stage. This boosted the share of the Essen Group. In ThyssenKrupp’s supervisory board such talks were but so far no issue, another insider told Reuters: “This has not been discussed.” ThyssenKrupp declined to comment on the details. No secret is that mergers in the battered industry be probed again. Until now are results but not in sight, said insiders. The steelworkers suffer from overcapacity and cheap imports from China.

The crisis of heavy industry has also brought politics into action. On April 11, will speak from the gates of ThyssenKrupp in a day of action of the trade union IG Metall in Duisburg among others Federal Minister Sigmar Gabriel. He had the industry pledged support. “Overcapacity in the steel sector in China may not be charged to the Union producers go,” said his Ministry.

WHO WITH WHOM?

Given the problems there are always calls that it should come to a readout of the industry around the world leader ArcelorMittal and the German top dogs ThyssenKrupp. ThyssenKrupp chief Heinrich Hiesinger has stressed its willingness to participate from a position of strength to a consolidation in the European steel industry. When might it happen, but he has left open. When possible merger partner ThyssenKrupp industry experts had placed next to the German number two Salzgitter repeatedly also the steelmakers Tata Steel into play. The just announced its withdrawal from the UK, where it employs about 15,000 people. In the Netherlands, Tata maintains contrast profitable steel plant – relatively close to the ThyssenKrupp production facilities in Duisburg. Since already a good year both sides probed possibilities of a merger of its steel business in Europe, an insider now said: “There’s really something to it.”

According to The “Rheinische Post” for some time, talks are underway by Tata and ThyssenKrupp, there is a specific interest of the Indians. Listed on the DAX benchmark index ThyssenKrupp stocks rose then by more than eight percent upwards. However multibillion pension obligations weighing on the ThyssenKrupp Steel division. Their future should be clarified in a merger, said another insider. The newspaper also brought a merger of ThyssenKrupp and Salzgitter to a German “steel giants” into play. Salzgitter CEO Heinz Jörg Fuhrmann, however, had only issued in mid-February in a Reuters interview mergers a rejection: “We are not planning any mergers or consolidations.”. In MDAX, Salzgitter shares more expensive on Friday at around four percent, gave the afternoon but again.

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