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Tata Steel and ThyssenKrupp merger deal confirmed | Tata Steel and ThyssenKrupp merger deal confirmed |
(35 minutes later) | |
India's Tata Steel and German steel manufacturer ThyssenKrupp have agreed the first stage of a deal to merge, it has been confirmed. | India's Tata Steel and German steel manufacturer ThyssenKrupp have agreed the first stage of a deal to merge, it has been confirmed. |
The companies signed a memorandum of understanding to combine their European steel operations in a 50-50 venture. | The companies signed a memorandum of understanding to combine their European steel operations in a 50-50 venture. |
The tie-up will lead to job losses, to be shared between the two companies. | |
They had been in negotiations since last year when Tata withdrew from a sales process to sell its entire UK operations. | |
Almost 7,000 people are employed by Tata Steel across Wales, including more than 4,000 in Port Talbot - the largest steel works in the UK. | Almost 7,000 people are employed by Tata Steel across Wales, including more than 4,000 in Port Talbot - the largest steel works in the UK. |
It was confirmed on Wednesday that the flat steel businesses of the two companies in Europe and the steel mill services of the ThyssenKrupp group will merge under the deal. | |
But the two partners expect the move will lead to about 4,000 jobs going, half from administration and half from production. | |
The Community union said it would be seeking assurances for workers. | |
Roy Rickhuss, general secretary, said: "As a priority, we will be pressing Tata to demonstrate their long term commitment to steelmaking in the UK by confirming they will invest in the reline of Port Talbot's blast furnace number five. | |
"We must also be assured that ThyssenKrupp's pension liabilities will be ring-fenced with a cast-iron guarantee that UK steelworkers will never fund German pensions. | |
"We are now seeking an urgent meeting with Tata to fully understand their intentions for the UK in the context of the joint venture." | |
Who are ThyssenKrupp? | |
Andrew Robb, chairman of Tata Steel Europe, said the announcement marked the latest step in "building a future for Tata Steel's activities in Europe which is sustainable in every sense". | |
Business Secretary Greg Clark said the companies shared an ambition for Port Talbot "as a world-class steel manufacturer, with a focus on quality, technology and innovation". | |
Tata's £15bn pension scheme had been a major sticking point in the merger negotiations. | |
But an agreement with Tata workers and the support of the pensions regulators meant the company had distanced itself to a large extent from its pensions liabilities. |