The German industrial concern ThyssenKrupp and the Indian group Tata Steel agreed to unite on the basis of metallurgical production in Europe. The company was informed about this on Wednesday, September 20.
The merger will allow metallurgical corporations to take the second place in the market after ArcelorMittal.
"We solve the structural challenges of European metallurgy and create force number two. In Tata, we found a partner with a very good strategic and cultural approach, "said ThyssenKrupp AG CEO Heinrich Hiesinger.
It is expected that the merger agreement will be finally concluded in 2018, the annual revenues from joint activities will amount to 400 to 600 million euros. The number of employees of the new company will be 48,000. Both companies will have 50 percent in the joint venture, which will be managed through a holding company in the Netherlands.
At the same time it is noted that under the threat of dismissal were four thousand employees - two thousand each in companies that intend to merge. The ThyssenKrupp Production Council and the unions have already criticized the announcement of the intention to merge German and Indian metallurgical enterprises. Chairman of the trade union association IG Metall, a member of the supervisory board of ThyssenKrupp Detlef Wetzel said that the companies will be able to unite only if the rights of workers are respected.
"We want all risks to be taken into account and require guarantees for employees. If this does not happen, the transaction will not be concluded, "he said and warned that consent to the merger should be given by the supervisory board of ThyssenKrupp.
