ThyssenKrupp, Tata in 50:50 JV to form Europe's second-largest steel firm

The merged company expects to cut costs by € 400-600 million a year, mainly by slashing back-office expenses, optimising distribution and squeezing suppliers

German steel maker ThyssenKrupp and Tata Steel have agreed to form an equal joint venture that would create Europe’s second-largest steel firm, after ArcelorMittal. Tata Steel has said it would shift € 2.5 billion of its debt to the new entity. ThyssenKrupp would also be shifting its liabilities worth € 3.6 billion that it had gathered from its pension schemes. 

“Tata Steel India is in a strong position to grow faster and set to double its capacity through organic or inorganic route, post deal with ThyssenKrupp,” Tata group Chairman N Chandrasekaran said in a press conference. 

The new entity —