Moneycontrol News
Thyssenkrupp AG is in the final stretch of talks to merge its European Steel business with Tata Steel Limited, according to a Livemint report.
The report stated the negotiations were stalled for more than a year and a half as Tata Steel tried to resolve its British pension liabilities.
Mint also cited the Monthly Manager Magazin, which reported that Thyssenkrupp’s supervisory board could agree to the merger either on 23 or 24th of this month.
On Monday, Tata Steel said that Britain’s pensions regulator has approved a regulated apportionment arrangement (RAA) with respect of the British Steel Pension Scheme (BSPS). The deal got Tata Steel to distance itself from the pension scheme.
The pension fund was estimated to be worth £ 15 billion, which made insolvency for the company a real possibility. The RAA called for a payment of 550 million pounds from Tata Steel, United Kingdom. Also, shares worth 33 percent economic equity stake in the company must be handed over to the BSPS.
Koushik Chatterjee, Tata Steel’s group executive director, spoke to the Mint, saying that there will be a time lag in implementation, given the wide membership base of the scheme and that net financial impact all the settlements, including the £ 550 million amount, will be seen in the Q2 FY18 financial statements
The report also stated that this merger would make the combined entity the second largest steel maker in Europe.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
