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    on the intended Joint Venture with thyssenkrupp.

    Looking for more information about the intended joint venture?  Read answers to frequently asked questions here.

    About the market | About the process | About the structure

    1. What is a joint venture?

    A joint venture, or JV, is a subsidiary established by two independent companies. Tata Steel and thyssenkrupp signed a Memorandum of Understanding to combine their European steel activities in a 50/50 joint venture.

    1. Who are thyssenkrupp?

    A major industrial group organised into five business areas, of which Steel Europe, a leading supplier of high-grade steel, is one. Steel Europe has about 27,000 employees and a head office in Duisburg, Germany. The other business areas in the thyssenkrupp group are: Components Technology, Elevator Technology, Industrial Solutions and Materials Services.

    1. Why does Tata Steel want to partner with thyssenkrupp?

    The European businesses of both companies, complement each other. The two companies supply customers in various regions. Both have a strong heritage and shared values. Both are focused on technologically advanced, differentiated products. The proposed joint venture would help to achieve greater economies of scale and make it easier to compete successfully on a global stage.

    1. What would the proposed joint venture mean for the future of the steelmaking hubs in the UK, the Netherlands and Germany?

    Both partners are clear that they want to keep the current network configuration of all the steelmaking hubs – IJmuiden, Port Talbot and Duisburg.

    About the market

    1. What has been happening in the steel industry?

    We live in an ever-changing world where the pace of global advancement is increasing. And the world of steel, too, is changing faster than ever. In part, this is due to structural and external forces. Steelmaking is a cyclical business, with a huge global overcapacity. In Europe, producers face additional challenges, including political uncertainty over Brexit, protectionist measures in the US, and unfairly priced imports.

    While demand for steel in Europe is recovering, the nature of this demand is shifting. Tata Steel and thyssenkrupp believe the proposed joint venture business would be better able to meet increasing demand for premium quality, technologically advanced products.

    About the process

    1. How does the joint venture process work?

    The process began with the signing of a Memorandum of Understanding (MoU), a legal document in which both companies express their intention to combine the operations of the European steel companies. The MoU sets out that Tata Steel would contribute all its European flat steel operations, while thyssenkrupp would contribute its Steel Europe business area.

    A new company, thyssenkrupp Tata Steel, would be created, and would become the second largest flat steel company in Europe. There are several further stages to progress. See the joint venture timeline for more details about the steps to be taken.

    1. At what stage is the proposed joint venture now?

    Tata Steel and thyssenkrupp AG signed a definitive agreement on June 30 to create a new company by combining their European steel businesses in a 50/50 joint venture. In the months ahead, thyssenkrupp Steel Europe and Tata Steel in Europe still operate as separate companies and as competitors until clearance by the respective authorities. Until then, both companies will work on concepts on how to best leverage synergies and optimise performance.

    Only after closing, thyssenkrupp Steel Europe and Tata Steel in Europe will be integrated as one company.

    About the structure

    1. How would the proposed joint venture be governed?

    There would be a two-tier governance structure: a supervisory board, representing the shareholders, which would have an oversight and governance role; and a management board, effectively running the day-to-day business operations. Both boards would have equal representation from Tata Steel and thyssenkrupp.

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