European Commission blocks Tata Steel-thyssenkrupp AG merger

The European Commission announced its decision to ban the proposed merger of Tata Steel Ltd. and thyssenkrupp AG. A press release issued by the Commission noted that the parties were unable to offer adequate remedies in relation to the concerns it raised. The commission indicated that the merger would result in less competition and increased processes for various types of steel products.

After initial market research, the Commission raised a number of preliminary competition concerns. He warned that buyers are likely to face a limited choice of suppliers as well as higher prices.

To confirm preliminary concerns, the Commission conducted an in-depth investigation, looking at feedback from a large number of customers in the packaging and automotive industries. The Commission also examined the role of imports from third countries. The final decision to ban the merger is made after a detailed investigation.

Competition Policy Commissioner Margrethe Vestager noted that the remedies offered by merging companies to tackle serious competition issues are inadequate. The ban on the merger is to avoid serious harm to European industrial consumers and consumers, she said. This decision maintains effective competition in the European steel markets, she added.