On Wednesday, the German heavy industry company ThyssenKrupp, with the Indian counterparts Tata Steel reached a preliminary agreement, the merger of the European steel business, each funded 50% into a "leading European steel company", called Thyssen Krupp Tata metal company.
Iron and steel producer ThyssenKrupp is one of the constituent stocks of the German DAX index, and Tata Steel is the world's 12th largest steel producer, the two companies plan to merge into the new company, will be Europe's second largest steel company.
ThyssenKrupp and Tata Steel's merger since last year has been in talks, the two sides hope to solve the problem of excess capacity.European version of "to the production capacity," the merger, but also the Board of Directors and the European Commission approved. The merger of the two companies could lead to a total of 4,000 (8%) layoffs, ThyssenKrupp said the merger will bring about 4-6 billion euros per year.
The two companies hope to sign the final agreement early next year and complete the merger by the end of 2018.