Tata Steel: Deal with ThyssenKrupp to revive sentiment; boost stock

With the valuations for its Europe business not as low as feared, analysts see gains in Tata Steel stock which has lagged peers

The deal to combine the European businesses of Tata Steel and ThyssenKrupp into an equal joint venture should provide relief to investors of Tata Steel.

For one, the terms are largely in line with those indicated in the Memorandum of Understanding (MOU) signed in September last year. Until the details were known, there was much concern as reports suggested that both the firms might have to reassess the worthiness of their operations and deal valuations in light of ThyssenKrupp having performed better than Tata Steel Europe post the signing of the MOU. There was also buzz that with a large