The European steel industry will usher in a new round of mergers and acquisitions, ThyssenKrupp and India Tata Steel merged with the European business has made new progress, the Italian Ilva steel company eventually sold to ArcelorMittal, the two mergers and acquisitions eventually expected To achieve the elimination of excess capacity in Europe.
After reaching an agreement with Tate Steel and pension agencies last month, ThyssenKrupp and Tata Steel merged with Europe to move forward. Tata and ThyssenKrupp may form a 50:50 joint venture, expected synergies and benefit from rising steel prices, the merger will likely save 500 million euros.
For the adoption of regulatory authorities and improve the regional market, Germany ThyssenKrupp Europe has hinted that its material services division will be with Klöckner (KCO) sales service company merger. The sale of the sales division is also compelling for ThyssenKrupp, who is said to have taken action by the European Commission to force the newly formed steel giants to sell their sales company. ThyssenKrupp management also stressed that from the perspective of the merger, its material services division, including metal sales and the Italian Terney special steel company will appear no longer important, no longer as the company's core sector, believe that the material division Consolidation with KCO will integrate European sales. Tata Steel is the main supplier of KCO steel.
Another concern for the merger is Italy ArcelorMittal Investco's acquisition of Ilva Iron & Steel (Ilva). The Special Commission, authorized by the Italian Ministry of Economic Development, will hold exclusive negotiations with the latter, including, among other things, the increase in the number of employees, the establishment of R & D centers in Taranto, the identification and tracking of the most sustainable and efficient environmental impacts The smallest technical solutions, including the use of direct reduced iron technology. According to the government's statement, ArcelorMittal promised to raise employees to about 10,000.
Background Playback:
Tata Steel's Tallberg Steel Plant, located in the Welsh region of the UK, is the largest steel mill in the UK. Tata Steel has suffered losses in the past few years as a result of continued weakness in global steel demand, higher manufacturing costs and exchange rate fluctuations. The company had planned to sell all of its steel business in the UK in March last year, but was hampered by the British government and trade unions, and later changed the program to seek a joint venture with the German ThyssenKrupp company for European operations. But may lead to a large number of workers in the UK unemployed, but also by the British trade unions strongly resist. To this end, in order to promote the merger with ThyssenKrupp European business and to reduce financial pressure, Tata Steel Company can only reduce the burden of overworked workers in exchange for the guarantee of the British business production and investment and guarantee the work of the commitment.
Italy IIva annual production capacity of 11.2 million tons of Taranto steel mills is one of the largest local enterprises, production accounted for Italy, the total iron and steel production of 1 / 3. May 2012 was accused of toxic dispersions caused by high incidence of cancer by the local court ruling After the violation of environmental law, its fate after several ups and downs. The plant will be managed by the government in 2015 and will attempt to retain its staff and rectify its ironmaking process. 2016 The government decided to sell the plant through international bidding, and on March 6 of the same year, AMinvestco and Italy Acciai filed a binding offer to become the most popular M & A event in the steel industry last year.
