Thyssenkrupp eyes Plan B for European steel - report
Reuters
Published Mar 03, 2017 07:49
Thyssenkrupp eyes Plan B for European steel - report
FRANKFURT (Reuters) - Germany's Thyssenkrupp (DE:TKAG) has looked at the option of splitting its European steel business into a separate company that could be floated if a merger with Tata Steel (NS:TISC) assets fails, German weekly WirtschftsWoche reported on Friday.
The report, which did not cite sources, said a merger was still the preferred option but that investor pressure could force Chief Executive Heinrich Hiesinger to consider another route.
"There is no new status," a spokesman for Thyssenkrupp told Reuters.
Thyssenkrupp and Tata have been talking for over a year about merging their European steel units to cut costs and overcapacity, but the plan is complicated by Tata's huge pension deficit in Britain.
Hiesinger said at the German industrial group's annual shareholders' meeting on Jan. 27 that he would not be pressured to rush a deal with Tata, but there was no "Plan B" for the steel business.
He also told German daily Handelsblatt on Feb. 23 that the company was prepared to move forward on its own if necessary but would prefer consolidation. He also said that Thyssenkrupp would remain part-owner of the steel business in any merger scenario.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.