INSUBCONTINENT EXCLUSIVE:
to sell parts of its European packaging activities to secure regulatory approval for a planned joint venture with Thyssenkrupp, three people
familiar with the matter told news agency Reuters.The two steelmakers on Wednesday agreed an eight-day extension to a deadline for
submitting remedies to the European Commission, which has been concerned that the combined entity could hurt competition in some areas.The
people said no final decisions have been made and remedy proposals could still change or be amended before the new April 1 deadline
The Commission aims to wrap up its antitrust investigation into the tie-up of Tata Steel and Thyssenkrupp by May 13.Tata Steel and Germany's
Thyssenkrupp last year agreed to combine their European steel activities in a 50-50 joint venture to cut overcapacity and create a more
powerful challenger to market leader ArcelorMittal.Offering some packaging steel assets would address one of the areas that have been
singled out by the Commission in its antitrust review
Under their deal, both companies would own about half of the European packaging steel market, industry sources have said.Thyssenkrupp
A spokesman for Tata Steel said it was not appropriate to comment or speculate on the process
"Both companies are committed to working closely with all relevant regulators to ensure the success of this transaction," he said.In the
financial year 2017-2018, Tata Steel Europe made 1.03 billion euros ($1.2 billion) of sales from packaging steel for food, paint and aerosol
cans, among others, accounting for about 13 per cent of total revenues.This is only slightly less than the 1.16 billion euros generated by
Thyssenkrupp's packaging steel unit Rasselstein in 2015-2016, according to the latest available company data
This business will not be part of the remedy offer, the people said.In packaging, Thyssenkrupp and Tata Steel are both active in the
production of tinplate and blackplate.Another area of concern for the Commission is electrical steel, where Tata Steel last year put its
Cogent business on the block
The companies hope that the disposal plans will be sufficient to avoid further remedies, the people said.Sources told Reuters earlier this
month that Thyssenkrupp and Tata Steel would drive a hard bargain in their discussions with the Commission to not put at risk the strategic
and economic rationale of the deal.($1 = 0.8815 euros)Get the latest election news, live updates and election schedule for Lok Sabha
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