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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, but a union said it had been assured there would be no "reductions in production capacities" across the UK. | |
Almost 7,000 people are employed by Tata Steel across Wales. | |
That includes more than 4,000 in Port Talbot - the largest steel works in the UK. | |
The two companies had been in negotiations since last year when Tata withdrew from a sales process to sell its entire UK operations. | |
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. | 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. | 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. | The Community union said it would be seeking assurances for workers. |
Roy Rickhuss, general secretary, said: "While a merger of this size will inevitably mean a review of support functions such as HR and IT, the vast majority of these roles are no longer located in the UK. | |
"We have been assured there will be no asset closures or reductions in production capacities across the UK. | |
"If the company does seek to implement compulsory redundancies we will fight that using every necessary means." | |
Councillor Alun Llywelyn, who represents Ystalyfera in Neath Port Talbot, said the deal was a "step forward" but added: "We need a lot more information about their business plan." | Councillor Alun Llywelyn, who represents Ystalyfera in Neath Port Talbot, said the deal was a "step forward" but added: "We need a lot more information about their business plan." |
Who are ThyssenKrupp? | 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". | 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". | 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. | 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. | 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. |