Published On:April 2 2016
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Tata Steel eyes stake in Thyssen's Europe steel unit.
Tata Steel is planning to take a stake in Thyssenkrupp’s European steel unit, German business paper Rheinische Post reported recently, sending shares of the German steelmaker higher. The paper said talks were at an advanced stage, citing government sources in Berlin.
Tata Steel, second largest steel producer in Europe, put its loss-making British operations for sale this week. That decision has raised expectation of a long-awaited consolidation of Europe’s battered steel sector, which is suffering from years of unaddressed overcapacity.
Thyssen’s Steel Europe unit is profitable and a Tata-Thyssen combination excluding the UK is seen as most likely. Shares in Thyssen jumped as much as eight per cent to a four-month high at Euro 19.75 but pared gains somewhat after a person familiar with the situation said the Thyssen’s supervisory board had not yet discussed a possible tie-up.