Thyssenkrupp, Tata Steel on collision course with Europe over joint venture: Sources

Thyssenkrupp and Tata Steel will not go very far in concessions to gain approval for a planned steel venture, four people familiar with the matter said, adding their offer might not be enough to satisfy the European Commission.

The two companies last year struck a landmark deal to combine their European steel units to create the continent`s second-largest steelmaker after ArcelorMittal, a move that must be cleared by the European regulators.

While Thyssenkrupp and Tata Steel are working on a remedy package, they are unlikely to make far-reaching concessions, three people familiar with the matter said, increasing the risk of a lengthy tussle with the Commission.

Two of the people said the groups would argue that remedies in the areas of electrical and galvanised steel were not needed.

A spokesman for Thyssenkrupp said the company was in constructive talks with the Commission and that it remained confident that the transaction could be completed in the spring. 

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Tata Steel was not immediately available for comment.