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Krisztian Bocsi | Bloomberg
An employee beside a blast furnace cast house at ThyssenKrupp AG’s steel plant in Duisburg, Germany.
Tata Steel says it has signed a memorandum of understanding with Thyssenkrupp to create a “leading European steel enterprise.”
The company said the 50-50 joint venture — Thyssenkrupp Tata Steel — will be headquartered in Amsterdam and it will be created by both companies combining their flat steel businesses in Europe and the steel mill services of Thyssenkrupp.
The new venture “would have a robust capital structure that is well matched by the underlying free cash flows of the company,” Tata Steel said in a release.
The combination will lead to annual synergies of 400 to 600 million euros ($480 million too $720 million), Thyssenkrupp said, adding that up to 4,000 jobs would have to be cut in the joint venture, about 8 percent of the joint workforce.
—Reuters contributed to this report.
