German steelmaker ThyssenKrupp has announced that it has filed a complaint with the General Court of the European Union (EGC) against the European Commission’s decision to prohibit the proposed merger between the company and Indian-owned steel producer Tata Steel.
The Commission had vetoed the merger by saying that a joint venture between these two companies would reduce competition and increase prices for certain steel grades, as previously reported by SteelOrbis. The Commission also stated that the solutions offered by ThyssenKrupp and Tata Steel for these risks were not sufficient.
ThyssenKrupp said that it does not share these concerns and that the commitments submitted by Thyssenkrupp and Tata Steel, relating to production facilities, long-term supply contracts and significant investments, would have been sufficient to remove competition concerns.
Dr. Donatus Kaufmann, member of the executive board of ThyssenKrupp, said, “The consolidation of the European steel industry is still right and necessary, which is also shown by the current critical market situation for steel manufacturers. Overcapacities and high import pressure from Asia create an environment in which the planned joint venture with Tata Steel would not have impaired competition. We regret the European Commission's decision and regard it as too far-reaching and wrong. That is why we are filing a complaint."