Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
S A A R T H I
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
SEBI
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
IPOs
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Research
Arbitrages
Equity
Market Whispers
Tax Planning
Home
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
Stock Report

| More

Tata Steel and thyssenkrupp sign Memorandum of Understanding to create a leading European steel enterprise in a 50:50 JV

Posted On: 2017-09-20 08:50:10

Tata Steel Limited and Thyssenkrupp AG have signed a Memorandum of Understanding (MOU) to create a leading European steel enterprise by combining the flat steel businesses of the two companies in Europe and the steel mill services of the Thyssenkrupp group. The proposed 50:50 joint venture - Thyssenkrupp Tata Steel - would be focused on quality and technology leadership, and on the supply of premium and differentiated products to customers, with annual shipments of about 21 million tonnes of flat steel products.

The joint venture would have a pro forma turnover of about Euro15 billion per annum (Rs115,000 crore) and currently employs about 48,000 people spread across various locations. It would be headquartered in Amsterdam, Netherlands. The proposed combination of businesses would be formed through a non-cash transaction framework, based on fair valuation, where both shareholders would contribute debt and liabilities to achieve an equal shareholding in the venture.

Thyssenkrupp Tata Steel would have a robust capital structure that is well matched by the underlying free cash flows of the company. It would benefit from the scale and distribution network capability of the combined assets to achieve quality, technology and cost leadership in the European steel industry. It is also the clear intent of both partners to remain as long-term investors and continue the present network configuration of all the upstream hubs in the proposed joint venture company.

Commenting on the MoU, N Chandrasekaran, Chairman, Tata Steel said, "The Tata group and Thyssenkrupp have a strong heritage in the global steel industry and share similar culture and values. This partnership is a momentous occasion for both partners, who will focus on building a strong European steel enterprise. The strategic logic of the proposed joint venture in Europe is based on very strong fundamentals and I am confident that Thyssenkrupp Tata Steel will have a great future."

"Thyssenkrupp and Tata Steel are creating a sustainable future for their respective European steel activities by jointly forming the planned joint venture. This business combination creates a strong number 2, and is thus much better positioned to cope with the structural challenges in the European steel industry. With Tata Steel, we have found a partner with a very good strategic and cultural fit. Beyond a clear performance orientation, we also share the same philosophy of corporate responsibility towards employees and society", said Dr Heinrich Hiesinger, chairman, executive board, Thyssenkrupp.

Mr Chandrasekaran added, "As our partnership with Thyssenkrupp progresses in Europe, Tata Steel is well positioned to leverage India's growing economy by adding significant capacity in value added products to meet emerging customer needs. Tata Sons would continue to financially support Tata Steel's strategy for capacity expansion through organic and inorganic growth opportunities in India."

Koushik Chatterjee, group executive director, Tata Steel, said "The signing of the MoU with Thyssenkrupp marks an important milestone for Tata Steel group with regard to wider European portfolio strategy. Based on our initial assessment, cost synergies in the range of Euro400 to Euro600 million per annum may be realised through integration of commercial functions, R&D and other supporting activities. Both shareholders have taken care to ensure that the balance sheet of the combined venture will be structured to ensure a sustainable business going forward. The proposed transaction in Europe also paves the way for significant de-leveraging of the Tata Steel group's consolidated balance sheet and provides the platform for Tata Steel to pursue future growth."

Through the combination, both companies would benefit from significant synergies. In the early years, these synergies would primarily derive from an integration of sales and administration, research and development, a joint optimisation of procurement, logistics and service centres. In addition to this, Thyssenkrupp Tata Steel would seek to improve capacity utilisation of the network across the three hubs of IJmuiden (the Netherlands), Duisburg (Germany) and Port Talbot (Wales, UK) and their related downstream facilities.

The process will now move to the next phase in the transaction with due diligence and negotiations on the definitive detailed agreements. The combination is subject to execution of the final agreements and obtaining all corporate authorisations, including Board and Tata Steel shareholder approvals. Completion would be conditional on certain closing conditions, including obtaining requisite competition approvals.

Shares of TATA STEEL LTD. was last trading in BSE at Rs.687.65 as compared to the previous close of Rs. 676.55. The total number of shares traded during the day was 649972 in over 8115 trades.

The stock hit an intraday high of Rs. 691.05 and intraday low of 674.3. The net turnover during the day was Rs. 445605878.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Royal Orchid Hotels Ltd to consider second quarter results on Nov 2, 2017
Amarjothi Spinning Mills Ltd to announce Q2 results on Oct 30, 2017
Ramco Systems sets up subsidiary in Indonesia
NIIT strengthens Global Retail Business arm to drive Digital Transformation
Karnataka Bank launches its revamped corporate website
BMB Investment Bank, Bahrain selects TCS BaNCS for Treasury to drive innovation and enhance customer experience
Subex User Conference 2017 set to tackle the operational challenges of Digitalisation
TCS Recognized as a Leader in Life Sciences Social Media Analytics by IDC MarketScape
Banks catch up with Amazon and Netflix as iGTB's CBX 18 launches the contextual revolution
Zydus receives final approval from the USFDA for Allopurinol Tablets USP
TCS Launches 'Connected Clinical Trials' Platform on its Advanced Drug Development Suite
Persistent Systems amongst the leading players in 'Zinnov Zones 2017 - Digital Services' Report
Zydus receives final approval from the USFDA for Desvenlafaxine Extended-Release Tablets
CARE assigns ratings to commercial paper programme of Surya Roshni Ltd
Shiva Cement Ltd calls for Board Meeting on Oct 27, 2017
Weizmann Forex Ltd to consider quarterly results on Oct 31, 2017
Capital First Ltd to announce Q2 results on Oct 31, 2017
Shriram City Union Finance Ltd to consider second quarter results on Nov 2, 2017
INOX Leisure Ltd commences operations of Video Cinema at Atrial Mall, Worli
Reliance Home Finance Ltd to approve Q2 results on Oct 30, 2017
K P R Mill Ltd calls for Board Meeting on Oct 30, 2017
Ultramarine & Pigments Ltd to consider 2nd quarter results on Nov 11, 2017
VA Tech Wabag Ltd calls for Board Meeting on Nov 8, 2017
Beardsell Ltd appoints Mrs. Vijayalakshmi Ravindranath as Independent Director
GMR Hyderabad International Airport to allot $350 Mn of 4.25% senior secured fixed rate notes
Apollo Hospitals Enterprise Ltd to announce Q2 results on Nov 13, 2017
Frontline Securities Ltd appoints CFO
Megri Soft Ltd calls for Board Meeting On October 28, 2017
Ind Bank Housing Ltd announces resignation of company secretary
Jammu & Kashmir Bank to consider 2nd quarter results on Oct 27, 2017
VXL Instruments Ltd calls for Board Meeting on Oct 31, 2017
Redington India Ltd calls for Board Meeting on Oct 31, 2017
IP Rings Ltd calls for Board Meeting on Nov 8, 2017
ESAB India Ltd to announce second quarter results on Nov 9, 2017
Sundaram Brake Linings Ltd calls for Board Meeting on Nov 9, 2017
Archana Software Ltd to announce quarterly results on Oct 30, 2017
TTK Healthcare Ltd to approve 2nd quarter results on Nov 8, 2017
OnMobile Global Ltd calls for Board Meeting On October 30, 2017
Britannia Industries Ltd to consider Q2 results on Nov 12, 2017
InterGlobe Aviation Ltd updates on investments in mutual funds
Gyan Developers & Builders Ltd calls for Board Meeting on Oct 25, 2017
Divi's Laboratories Ltd calls for Board Meeting on Oct 31, 2017
Andhra Bank to approve Q2 results on Nov 2, 2017
Srestha Finvest Ltd calls for Board Meeting on Nov 10, 2017
Loyal Textile Mills Ltd appoints Ms.Vishala Ramswami as CEO
Tanla Solutions to announce 2nd quarter results on Oct 31, 2017
Automobile Corporation of Goa Ltd to consider Q2 results on Oct 30, 2017
Dhanlaxmi Bank Ltd to consider Q2 results on Nov 13, 2017
Page Industries Ltd fixes Nov 17, 2017 as record date for interim dividend
ONGC fixes Nov 6, 2017 as record date for first interim dividend


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2017