According to a press release the European Commission has prohibited the creation of a joint venture by Tata Steel and ThyssenKrupp under the EU Merger Regulation. The merger would have reduced competition and increased prices for different types of steel. The parties did not offer adequate remedies to address these concerns.

Taking into account that Tata Steel is the second producer of steel in EU, while ThyssenKrupp is ranked third, the Comission ruled that a future joint venture between the two would restrict competition on the laminated steel coated packaging market, as well as on the automotive hot dip galvanised steel market.

During its analysis, the Comission concluded that the clients of the above entities will not have real possibilities to buy the required materials from other suppliers, thus assessing that there will not be sufficient competition on the market, in case the joint venture is approved.