Mumbai (Maharashtra) [India], June 12 (ANI): Tata Steel on Wednesday said the European Commission has formally announced its decision to prohibit its proposed European steel joint venture with Thyssenkrupp AG.
The aim of the merger was to create the second largest European steel company behind multinational giant ArcelorMittal and to join forces in the face of surging Chinese steel. But the EU antitrust regulators said the deal would have pushed up prices and reduced competition.
"We prohibit the merger to avoid serious harm to European industrial customers and consumers," EU Competition Commissioner Margrethe Vestager said in a statement.
"Steel is a crucial input for many things we use in our everyday life such as canned food and cars. Millions of people in Europe work in these sectors and companies depend on competitive steel prices to sell on a global level," she said.
On May 10, both companies said they anticipated the European Commission will 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," it said in a statement on Wednesday.
"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," said Tata Steel. (ANI)