The executive board and the supervisory board of thyssenkrupp AG have adopted resolutions for the signing of a definitive agreement to create a 50/50 joint venture, which will combine the European steel businesses of thyssenkrupp and Tata Steel. This follows the signing of a Memorandum of Understanding in September 2017.
Due diligence and independent expert opinions have confirmed the economic viability of the new company and the expected annual recurring synergies of €400 to 500 million. The joint venture with Tata Steel is an important milestone for the transformation of thyssenkrupp to an industrials and service group and will lead to a significant improvement of the financial figures of thyssenkrupp, effective with closing.
In case of an Initial Public Offering (IPO) of the joint venture thyssenkrupp will receive a higher share of the proceeds, reflecting an economic ratio of 55/45.
The signing of the definitive agreement is expected shortly. The transaction is subject to merger control clearance in several jurisdictions, including the European Union.
Contact:
Dr. Claus Ehrenbeck
Head of Investor Relations
Phone: +49 201 844-536464
Peter Sauer
Head of External Communications
Phone: +49 201 844-536791
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ThyssenKrupp AG published this content on 29 June 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 June 2018 21:33:05 UTC