Sources tell CNBC-TV18 that Tata Steel’s JV with ThyssenKrupp is in its final stages after speciality steels asset sale.
Tata Steel and Thyssenkrupp are looking at reducing the size of Britain's largest steel plant in Port Talbot, Wales, as the two firms press ahead with plans to merge their European steel operations and deal with the overcapacity afflicting the industry.
The move could see one of Port Talbot's two blast furnaces shut, halving the plant's capacity. Up to 4,000 people are employed at the site.
The joint venture will include Port Talbot, Netherlands Unit and ThyssenKrupp’s steel arm, learns CNBC-TV18.
Tata Steel and ThyssenKrupp are likely to own less than 50 percent each in the JV. The joint venture may sell minority stake to a financial investor following which an IPO is likely in the future.
Tata Steel is likely to park a part of debt in the joint venture with ThyssenKrupp. The joint venture is dependent on UK pensioners agreeing to a change in pension scheme.
Tata Steel said it won’t respond to media speculations to CNBC-TV18.
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