European Commission to probe Tata Steel and Thyssenkrupp tie-up
The European Commission said today it had opened a deeper investigation into Tata Steel’s planned joint venture with Thyssenkrupp over competition concerns.
The so-called phase II investigation was widely anticipated and follows a similar probe into ArcelorMittal’s takeover of Italian firm Ilva, which was only cleared after the group agreed to sell assets.
The deal between Tata Steel and Thyssenkrupp was announced earlier this year, with the pair revealing plans to combine their steel activities in the UK, the Netherlands and Germany to become Europe’s second-largest steelmaker after ArcelorMittal.
“The Commission is concerned that, following the transaction, customers would face a reduced choice in suppliers, as well as higher prices,” the Commission said in a statement.
“These customers include various European companies, ranging from major corporations to numerous small and medium-size enterprises,” it added.
A spokesperson for Thyssenkrupp said that the group would continue to work closely with the Commission, and that a deepened probe was standard for a transaction of this size.