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India's Tata Steel says weak Europe output to dent third-quarter earnings

India's Tata Steel says weak Europe output to dent third-quarter earnings
FILE PHOTO: Waste metal is seen at Tata Steel's new robotic welding line at their Automotive Service Centre in Wednesfield, Britain, February 15, 2017. REUTERS/Darren Staples   -   Copyright  Darren Staples(Reuters)
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(Reuters) – India’s Tata Steel Ltd <TISC.NS>, one of the flagship companies of the salt-to-software behemoth, said on Tuesday lower production in Europe will impact its financial results, ahead of a planned merger with Germany’s Thyssenkrupp <TKAG.DE>.

Production from its European plants fell 12.7 percent to 2.33 million tonnes for the third quarter ended Dec. 31, the company said in a press release.

Shutdowns and operational issues at IJmuiden plant in the Netherlands and Port Talbot in Wales hurt the company’s performance in the quarter, Tata Steel said.

The company is currently awaiting approval from the European Commission (EC) to combine its steel unit in Europe with Thyssenkrupp <TKAG.DE>, a deal that was announced last year.

Thyssenkrupp on Tuesday said it had submitted documents that the EC requested in December to resume its in-depth investigation of the transaction, which would create Europe’s second-largest steelmaker after ArcelorMittal <MT.AS>.

(Reporting By Arnab Paul in Bengaluru; Additional reporting by Tom Kaeckenhoff in Duesseldorf and Christoph Steitz in Frankfurt; Editing by Arun Koyyur)

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