In a landmark deal, Tata Steel & ThyssenKrupp seal 50:50 JV agreement

Move to lighten Tata Steel's balance sheet; ThyssenKrupp JV to be 50:50 partnership producing high-quality flat steel

Tata Steel has signed a definitive agreement with ThyssenKrupp AG to create a 50:50 joint venture that would be Europe’s second-largest steelmaker after ArcelorMittal.  The deal is being touted as the biggest consolidation in the European steel market since the acquisition of Arcelor by Mittal Steel in 2006 and Corus by Tata Steel in 2007. 

For Tata Steel, the deal valuations are better than what the Street was anticipating, following the underperformance of its Europe business in the past few quarters.

The joint venture, to be named ThyssenKrupp Tata Steel BV, will have a workforce of 48,000 employees across 34 sites, producing