On Tuesday 30 October, the European Commission opened an in-depth investigation to determine whether plans by Tata Steel and ThyssenKrupp, two large steel producers, to combine their European carbon steel and electrical steel businesses in a joint venture was compatible with EU competition law rules.
The companies notified the planned transaction to the Commission on 25 September.
Following an initial probe, the institution considered that various aspects of the transaction could raise questions regarding the restriction of competition in the steel sector. The segments in question are steel for automotive applications, metallic coated steel for packaging and grain-oriented electrical steel.
For these types of steel, the Commission has concerns that European companies that are clients of both groups will see the number of sources of supply reduced and prices rise.
For these reasons, the institution will take a closer look at the operation planned by Tata Steel and ThyssenKrupp, which opted not to suggest any commitments during the course of the initial investigation to respond to any objections the Commission may have. The Commission now has 90 working days to take position on the planned joint venture. (Original version in French by Lucas Tripoteau)