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Tata Steel's latest pensions deal in Britain does not lessen Thyssenkrupp workers' opposition to a possible merger of the two companies' European steel operations, said Thyssenkrupp's works council chief.
"Now a joint venture really doesn't make any sense," Wilhelm Segerath told Reuters on Wednesday.
Tata on Tuesday agreed to the main terms of a deal to cut benefits for its British pension scheme, which had been seen as a major stumbling block in the merger talks because Thyssenkrupp is opposed to taking on 15 billion pounds ($19.4 billion) in UK pension liabilities.
Under the deal, Tata will plough 550 million pounds into the British Steel Pension Scheme (BSPS). At the same time, Tata will give the BSPS a 33 per cent equity stake in its UK business.
"That doesn't remove the risk posed by the pension liabilities," Thyssenkrupp's Segerath said.
($1 = 0.7739 pounds)
