German steelmaker Thyssenkrupp said Friday it would cut some 6,000 jobs and restructure its businesses after saying that it expects European antitrust regulators to block plans for a joint venture with India's Tata Steel.
Under the old restructuring plans, Thyssenkrupp Materials would have held a 50 percent stake in the planned steel JV with Tata Steel.
The company tried to convince the competition authorities with concessions from the merger.More news: Bale agent: I hope he keeps playing for Madrid
"The Commission today discussed our proposed JV".
Thyssenkrupp said in a statement that the companies had offered changes to address the European Commission's concerns but that hadn't been enough.
He said Tata had plans to keep the United Kingdom operation running "as long as they are performing well" and were cash positive. But after two profit warnings, Thyssenkrupp's share price is too low to make this deal work, leaving Kerkhoff's scrambling for a Plan B, these people said. The Tata deal not going through will directly benefit China.
The future of the Port Talbot steelworks has been thrown into doubt as Tata Steel and Thyssenkrupp prepare to abandon their plans to merge.More news: Mohamed Elneny Plays - Arsenal Team vs Burnley Confirmed
Narendran said that high energy costs continue to be an issue but that the company plans "to keep running the United Kingdom as long as it is performing well". "Obviously we will go back to the drawing board and look at more options". This will also lead to an adjustment of the forecast for the 2018/19 financial year. The transaction was aimed at extracting synergy benefits in an anaemic market and creating a "sustainable" steel enterprise. "So, we are in a better place than ever before", Narendran said.
Hans Fischer, chief executive of Tata Steel's European operations, said: "Our strategy is to be the leading and most sustainable flat steel company in Europe with a strong focus on delivering value, especially for our customers, our employees and our shareholders".
A ThyssenKrupp spokesman said: "The Competition Commission has taken the reworked commitments proposed by ThyssenKrupp and Tata Steel as an opportunity to conduct another market test". "Consequently, we assume that the Commission will not approve the JV", it said.
When asked if an IPO was one of those options, Chatterjee said: "We can't talk specifics". We didn't have a great year last year in the UK. At the end of March 2019, Tata Steel's gross debt stood at about Rs 1 lakh crore, having reduced it by Rs 18,000 crore in the last six months.More news: Texas announces future series vs. Florida, Arizona St.
In terms of traded volume, 26.40 lakh shares were traded on the BSE and over 3 crore shares on the NSE during the day.