Exclusive Exclusive: Brexit Stalls ThyssenKrupp-Tata Merger
The planned merger between the European steel units of German industrial giant ThyssenKrupp and Indian conglomerate Tata will at the very least be delayed, if not completely abandoned, by Britain’s decision to leave the European Union, Handelsblatt has learned. Tata previously had negotiated financial aid and relief with the British government to modernize or sell its plants in the country. Last week’s Brexit vote and the resignation of Prime Minister David Cameron called into question the agreement. Whether or not the next British government will abide by the deal remains to be decided. Insiders expect that at the minimum, the merger will be postponed by several months. When contacted, both companies reacted cautiously. “The Brexit doesn’t make it easier,” a ThyssenKrupp spokesperson told Handelsblatt. A Tata spokesperson said: “We are still committed to finding the best possible solution for the British business.” According to Handelsblatt sources, ThyssenKrupp’s Chief Executive Heinrich Hiesinger aims soon to talk to Tata officials to discuss the next moves. Read the full story on Monday in Handelsblatt Global Edition. Photo: Heinrich Hiesinger, CEO Thyssen Krupp. Photo source: DPA.
07/01/2016 - 04:21 PM