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Thyssenkrupp, Tata Steel lose fight against EU veto of joint venture

The companies had sought to tackle over-capacity and other challenges in the steel industry via the joint venture but the European Commission said the deal could result in price hikes.

Topics
ThyssenKrupp | Tata Steel | European Union

Reuters  |  Brussels 

ThyssenKrupp. Photo: Reuters.
ThyssenKrupp. Photo: Reuters.

and have lost their fight against a antitrust of their proposed landmark joint venture, after Europe's second-highest court rejected their arguments.

The two in 2019 had sought to tackle over-capacity and other challenges in the via the joint venture, which would have created Europe's second-largest steelmaker after ArcelorMittal. But the European Commission said the deal could result in significant price hikes and demanded remedies. at the time said would jeopardise the logic of the planned transaction.

The EU competition enforcer in its 2019 decision said the had not offered sufficient steps to address concerns, forcing it to block the deal and the to challenge the finding at the Luxembourg-based General Court.

"In today's judgment, the General Court rejects all the arguments raised by the undertaking and upholds the Commission’s decision," the Court said on Wednesday.

The parties can appeal on matters of law to the Court of Justice of the European Union, Europe's top court.

The case is T-584/19.

Thyssenkrupp, which has since explored and rejected an attempt to sell its steel division to Britain's Liberty Steel, said it had taken note of the decision.

"We remain of the opinion that the EU Commission's blocking of the joint venture with Europe in 2019 was a disproportionate step," the company said.

Europe declined to comment.

Joint debacle

•The joint venture would have become Europe's 2nd largest steelmaker after ArcelorMittal

•European Commission, though, had said the deal could result in significant price hikes

•Since 2019, has explored and rejected an attempt to sell its steel division to Britain's Liberty Steel

•The parties can appeal to the Court of Justice of the EU, Europe's top court

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Wed, June 22 2022. 15:16 IST
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