THYSSENKRUPP AG (FRA:TKA) thyssenkrupp AG: thyssenkrupp and Tata Steel sign memorandum of understanding for a 50/50 joint venture of their European steel activities

Transparency directive : regulatory news

20/09/2017 06:22

DGAP-Ad-hoc: thyssenkrupp AG / Key word(s): Letter of Intent/Joint Venture
thyssenkrupp AG: thyssenkrupp and Tata Steel sign memorandum of understanding for a 50/50 joint venture of their European steel activities

20-Sep-2017 / 06:22 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

Disclosure of an inside information according to Article 17 MAR

thyssenkrupp and Tata Steel sign memorandum of understanding for a 50/50 joint venture of their European steel activities

Essen, September 20, 2017. thyssenkrupp and Tata Steel today have signed a memorandum of understanding about the combination of their European steel activities in a 50/50 joint venture. The goal is to create a leading European flat steel player with a special focus on quality and technology leadership as well as a sustainably competitive cost base.

As a strong number two in Europe, both companies could achieve significant scale and network advantages together. They would create an integrated production and logistic network in Europe, enabling a better use of facilities. Both company's steel mills belong to the most efficient ones in Europe and complement each other in terms of customer sectors and products. Both companies are operating profitably.

The new company with the name thyssenkrupp Tata Steel, headquartered in the region of Amsterdam, would have pro forma sales of about EUR 15 billion, annual shipments of about 21 million tons of flat steel and about 48,000 employees at currently 34 sites.

The negotiations about the details of the transaction and the due diligence shall be finalized by signing of the transaction at the beginning of 2018. The signing of the joint venture contract will be subject to approval of the Supervisory Board of thyssenkrupp AG and the Board of Directors of Tata Steel. Besides, the transaction then requires merger approval especially from EU commission.

Through the combination, both companies would benefit from significant synergies of EUR 400 to EUR 600 million. In the early years these synergies would primarily derive from an integration of sales and administration, research and development, a joint optimization of procurement, logistics and service centers as well as from an improved capacity utilization of steel processing (downstream activities). In a later stage, the entire production network would be reviewed. Synergies that might potentially result from this have not been quantified thus far.

Both partners expect that in the joint venture up to 2,000 jobs in administration and possibly up to 2,000 jobs in production will have to be reduced. Those impacts shall be jointly shared between both partners.

Dr. Claus Ehrenbeck
Head of Investor Relations
T: +49-201-844-536464

Alexander Wilke
Head of Communications
T: +49-201-844-536043

20-Sep-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at

Language: English
Company: thyssenkrupp AG
thyssenkrupp Allee 1
45143 Essen
Phone: +49 (0)201 844-0
Fax: +49 (0)201 844-536000
ISIN: DE0007500001
WKN: 750000
Indices: DAX
Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange

Weitere Informationen im Internet unter Investor Relations: Anleihen / Creditor Relations Further information can be found on our website under Investor Relations: Bonds / Creditor Relations
End of Announcement DGAP News Service

611145  20-Sep-2017 CET/CEST


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