European Union Blocks Tata Steel-ThyssenKrupp Merger Plan – Market News Updates
Market News Updates

European Union Blocks Tata Steel-ThyssenKrupp Merger Plan

European Union smashes down the master tie-up of the two giants in the steel industry making hot news in the business news and updates. At the start of this year, there came an agenda of the merger of the two giants in the steel industry, Tata Steel and German company ThyssenKrupp. If this deal would have been made successful that would have formed the second most powerful steel company in Europe, just after the Arcelor Mittal, but EU put that down showing two noble causes against the tie-up.

The first reason it stated is related to employment. The EU messenger states to our news agency that this merger would make it certain that 6000 employees of Germany would lose their job. As a second reason she stated that if two of the giant companies reside in one place, then that would create a situation in the market that will be equal to n-competition and as a result of that, there would be the small business holders to ask whatever rate they affirm to. Hence there would be no control over the market if this merger is allowed.

On the other end, this failure of the merger has placed ThyssenKrupp at the back foot, who was already struggling with the different international affairs. The entire deal cancellation has forced them to plunge into a loss of 86 Million Euros and that has been a real contrary to the 250 million Euro profit the early year. The management of the company refused to open their mouth for or against the decision of EU, but it is sure that they are facing some real turmoil due to three things – the tariff from the US, cheap imports of Asian countries and of course their over-capacity. Now, a loss at the first of the year in such an amount is definite to make the management think on that.

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