Tata Steel-thyssenkrupp Steel Joint Venture Hit Roadblock

SEATTLE (Scrap Monster): The landmark joint venture project between leading global steelmakers Tata Steel and thyssenkrupp hit new roadblock. This follows the latest court ruling against it in the appeal launched against the antitrust veto earlier issued by the EU authorities. The arguments raised by the steelmakers were rejected by Europe’s second-highest court.

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The joint venture project was initially declared in 2019. It would have led to the creation of Europe’s second largest steelmaker after ArcelorMittal. However, the European Commission raised concerns that the deal could potentially result in significant price hikes. The EU Competition Commission blocked the deal, saying that the companies have not done enough to address the concerns. The finding was later challenged by the companies at the Luxembourg-based General Court.

In its judgement, the Court rejected all arguments raised by the companies and upheld the Commission’s decision.

The parties can now appeal to Europe’s top court- the Court of Justice of the European Union.

Meantime, thyssenkrupp spokesperson said that the company still stands by its earlier argument that EU Commission’s blocking of the joint venture was a disproportionate step. However, Tata Steel Europe declined to comment.