Tata Group

Tata 'deep disappointment' over blocked steel deal

steel worker
EPA

Tata Steel has issued a formal update to the London Stock Exchange about the decision by European Commission on Tuesday to confirm its decision to prohibit the proposed European steel joint venture between Tata Steel and Thyssenkrupp.

Both companies had already said they expected that that the Commission would not clear the proposed joint venture "despite both parties offering a comprehensive package of remedies addressing the concerns of the Commission".

"Tata Steel noted with deep disappointment the conclusions of the Commission. The company remains committed to its long-term strategy of focusing on growth in India, continue deleveraging its balance sheet and working towards creating a sustainable portfolio in Europe," it said.

Port Talbot 'will keep running'

steel
BBC

The Press Association has these quotes from Tata Steel's chief executive T V Narendran who has been asked about the future for Tata Steel Europe, and whether its Port Talbot site in South Wales could now close.

"I think what we're saying is obviously the plant will keep running.

"We need to make sure we run it well. We didn't have a great year last year in the UK.

"We want to make sure this year we run it well and we run it in a manner that is cash positive.

"We are a bit concerned about energy costs in the UK. In the last 18 months it's gone up quite significantly and that's not helping us.

"But we have plans to keep UK (operation) running as long as they are performing well and is cash positive, and I think the team there is working hard to make it that way."

Tata Steel deal 'to be blocked'

Steel worker takes a steel sample at a blast furnace run by ThyssenKrupp in Duisburg, Germany
EPA

Thyssenkrupp expects the European Commission to block its plan to merge its European steel business with Indian steel giant Tata.

"After today's conversation with the European Commission, Thyssenkrupp and Tata Steel expect that the planned joint venture of their European steel activities will not go ahead due to the Commission's continuing concerns," the German company said in a statement.

The European Commission had said previously it was concerned that customers would face higher prices and fewer suppliers if the merger was allowed to go ahead.

The deal includes the UK's biggest steelworks, at Port Talbot in Wales,