Zenith CC&P Current Awareness

European Commission prohibits ThyssenKrupp and Tata Steel merger

12 June 2019

Prof. Suzanne Rab

European Commission prohibits ThyssenKrupp and Tata Steel merger

Zenith's Prof Suzanne Rab writes:

The European Commission has prohibited the proposed merger between ThyssenKrupp and Tata Steel, the second and third largest producers of flat carbon steel in the EEA.  This is the third merger prohibition decision taken by the Commission in 2019 and only the eleventh taken under the current Merger Regulation (Regulation 139/2004).

The Commission found serious competition concerns in metallic coated and laminated steel for packaging applications, where the proposed merger would have created a market leader, and galvanised flat carbon steel for the automotive industry.

The Commission found that the merger would have eliminated an important competitor and this would not have been offset by competition from imports.

The Commission concluded that various structural divestments offered by the parties would not be sufficient to fully address its concerns.

The case shows how consolidation in the EU steel sector continues to face antitrust hurdles, yet this may be needed if the sector is to revitalise itself against growing competitiveness at global level.

Tata Steel/ ThyssenKrupp (M.8713)

European Commission Press Release IP/19/2948

Current Awareness

By the CC&P team