Crack in the welding: Tata Steel Europe, ThyssenKrupp JV hits speed bump

German firm's investors want better deal for merger

A lifeline joint venture deal for Tata Steel Europe with German giant ThyssenKrupp is headed for trouble with key shareholders asking the ThyssenKrupp management to re-negotiate a better deal as profits of the German company have improved while those of Tata Steel Europe have slowed since last September, when both companies first proposed a merger of their European businesses.

In a communication to Thyssenkrupp AG’s management, Elliott Capital Management, which owns a 3 per cent stake in the company, highlighted the divergence in performance of the steel businesses of Tata Steel Europe and Thyssenkrupp. The weakness in Tata’s slowing performance