Tata Steel in JV talks with ThyssenKrupp for European biz

Tata Steel on Friday said it has initiated talks with German conglomerate ThyssenKrupp AG for a possible joint venture for its European businesses, including UK operations.

The company, part of $100 billion Tata Group, also said it is separately starting the processes for sale of its South Yorkshire-based Specialty Steels business and Hartlepool pipe mills (other than the 20-inch Tube Mill) both in UK.

The announcement has come after the company screened around 200 potential financial and industrial investors for sale of its loss-making UK operations.

"The Board of Tata Steel has decided to also look at alternative and more sustainable portfolio solutions for the European businesses. Consequently, Tata Steel has now entered into discussions with strategic players in the steel industry, including ThyssenKrupp AG. Discussions have been initiated to explore the feasibility of strategic collaborations through a potential joint venture (JV)," the firm said in a statement.

However, it was not immediately ascertained whether they will go ahead with their sale plan of the UK business.

The company, part of the $100 billion Tata Group, further said, "However, the talks are currently at a preliminary stage and there can be no certainty of a transaction as the outcome depends on consultation and negotiations with various stakeholders."

In March, Tata Steel had announced the sale of its UK business.

The company and its advisers then contacted around 200 potential financial and industrial investors around the world to explore their interest in the business.

In May, seven expressions of interest were taken forward to the next stage of a possible sale process.

Tata Steel's Executive Director for Europe Koushik Chatterjee said, "We have initiated conversations for a strategic collaboration for our European businesses. A potential strategic combination of strip products businesses offers the best prospects to create a premium, world-class strip steel business with the scale and scope of capabilities to compete successfully on the global stage."