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Thyssenkrupp looking to close value gap in Tata Steel JV: sources

Reuters  |  FRANKFURT/DUESSELDORF 

FRANKFURT/DUESSELDORF (Reuters) - and India's are struggling to narrow a widening valuation gap as they seek to adjust debt and asset contributions in a planned merger of their European steel operations, people familiar with the matter said.

Thyssenkrupp's has performed better than Tata Steel's since an initial deal was struck in September, requiring both parties to adjust what their operations are worth and leading to a valuation gap, four sources said.

As talks reach their final stretch, options now include adjusting the amount of debt both groups will transfer to the venture or making a cash payment to to settle the difference, these people said.

A third option could include changing the 50-50 ownership structure of the planned entity, the sources said, adding this was the least likely scenario.

and both declined to comment.

($1 = 0.8492 euros)

(Reporting by Christoph Steitz, Tom Kaeckenhoff, Euan Rocha, Arno Schuetze and Maytaal Angel; Editing by Edward Taylor)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, June 13 2018. 19:28 IST
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