The Commission opened an “in-depth” investigation into the proposed merger in October last year amid concerns that the deal may reduce competition in the supply of various high-end steels.
Following an agreed extension last month for further negotiations, ThyssenKrupp confirmed it had submitted a “substantial” offer to the European Commission – the executive arm of the 28-member economic bloc.
Also Read
While the details of the proposals are yet to be revealed, the Indian and German steel majors are believed to have offered to sell assets in Belgium, Spain and the UK to win the EU’s approval for the proposed joint venture.
The European Commission is expected to review the latest set of proposals and announce its decision by June 5.
The Commission said its initial market investigation raised several issues, relating in particular to combining both companies’ offer of certain specialty flat carbon steel and electrical steel products. It expressed concerns that, following the transaction, customers would face a reduced choice in suppliers, as well as higher prices.
“These customers include various European companies, ranging from major corporations to numerous small and medium-size enterprises (SMEs). Many compete with imported products in the EEA, or export their products outside Europe and compete globally,” the Commission said in a statement.
The Tata-ThyssenKrupp transaction was notified to the European Commission in September 2018 and had 90 working days to take a decision, a period which ended last month before a formal extension was agreed.
Under EU rules, the Commission has a duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in