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EU blocks Thyssenkrupp, Tata Steel joint venture

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By Euronews
EU blocks Thyssenkrupp, Tata Steel joint venture

Plans to form a landmark joint venture between Thyssenkrupp and Tata Steel have been rejected by EU regulators over concerns that the deal would push up prices and reduce competition. The EU commmission had hoped a tie-up between the two giants would help tackle overcapacity and in Europe's steel industry. But it remains concerned about the proposal.

In particular the Commission fears imports from third countries wouldn't have offset potential cost hikes resulting from the deal. Last month ThyssenKrupp and Tata Steel had indicated an EU veto was on the cards after they declined to offer further concessions to address the regulators’ concerns. It's the third such major merger blocked by the commission this year.