Thyssenkrupp: EU prohibits proposed merger with Tata Steel
(CercleFinance.com) - The European Commission has prevented the potential merger between Tata Steel and ThyssenKrupp.
"The merger would have reduced competition and increased prices for different types of steel. The parties did not offer adequate remedies to address these concerns," the Commission said.
The Commission says that the decision taken today follows a thorough investigation into the project to create a joint venture, which would have combined activities relating to ThyssenKrupp's and Tata Steel's flat carbon steel and electrical steel in the European Economic Area (EEA).
Commissioner Margrethe Vestager, in charge of competition policy, said, "Without remedies addressing our serious competition concerns, the merger between Tata Steel and ThyssenKrupp would have resulted in higher prices. So we prohibited the merger to avoid serious harm to European industrial customers and consumers."
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