Tata Steel clinches JV with Thyssenkrupp to create new European steel giant

Tata Steel today said it has agreed to the terms of a 50-50 joint venture with Germany's Thyssenkrupp to create Europe's second-largest steel company after Lakshmi Mittal's ArcelorMittal.

The JV, which has been under discussions since September last year, combines the European steel businesses of the Indian steel major with the German firm to create Thyssenkrupp Tata Steel BV.

The new steel company will have a total workforce of 48,000 employees spread across 34 sites, producing about 21 million tonnes of steel a year with revenues of around Euro 15 billion.

"The Board of Tata Steel has approved the terms to create a 50:50 joint venture which will combine the European steel businesses of Tata Steel and Thyssenkrupp AG and has adopted resolutions for the signing of the definitive agreement," Tata Steel said in a statement on Saturday in accordance with the Securities and Exchange Board of India (Sebi) regulations.

The joint venture will create a strong pan-European steel company that is structurally robust and competitive, Tata Steel chairman N Chandrasekaran said.

"This is a significant milestone for Tata Steel and we remain fully committed to the long-term interest of the joint venture company."