Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Euronext Amsterdam  >  ArcelorMittal    MT   LU1598757687


News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Thyssenkrupp, Tata Steel see little room for more JV concessions - source

share with twitter share with LinkedIn share with facebook
share via e-mail
04/02/2019 | 09:00am EDT
FILE PHOTO: A steel worker of Germany's industrial conglomerate ThyssenKrupp AG works near a blast furnace at Germany's largest steel factory in Duisburg

FRANKFURT/DUESSELDORF, Germany (Reuters) - Thyssenkrupp and Tata Steel see little scope for making more concessions to try to win regulatory approval for a planned joint venture, a person familiar with the matter said, casting doubt over whether the deal will go ahead.

By Christoph Steitz and Tom Käckenhoff

The firms, which have been working for three years on a deal that would create Europe's second-biggest steelmaker, submitted proposals to the European Commission on Monday aimed at addressing its concerns over the deal's impact on competition.

Thyssenkrupp Chief Executive Guido Kerkhoff, who is currently trying to break up the elevators-to-submarines conglomerate, has in the past said it would not be a disaster if the joint venture did not go ahead.

The Commission has until June 5 to review the firms' proposals and make a decision.

The source said the companies' concessions included selling two hot-dip galvanising plants in Spain and Belgium that supply the automotive industry.

They also proposed selling packaging steel activities operated by Tata Steel in Britain and Belgium, the source said, adding the Commission had dropped its concerns in the area of electrical steel.

"The offer is extensive and substantial. At the same time, it is acceptable to the joint venture partners and no risk to the industrial logic of the joint venture," Kerkhoff said in a statement on Tuesday.

Thyssenkrupp declined to comment on the contents of the proposal. Tata Steel was not immediately available for comment.

The source said the groups would not make far-reaching concessions that would question the entire joint venture, which was set up to reduce overcapacity and create a stronger and more competitive player.

Along with packaging, automotive steel has been one of the areas of competitive concern for the Commission.

A second source with direct knowledge of the matter said selling Galmed, Thyssenkrupp's hot-dip galvanising line in Spain, would not be enough to win over the Commission as it also has concerns in markets such as Germany, France and the Benelux countries.

The planned joint venture is targeting 400-500 million euros (343.41-429.26 million pounds)in annual synergies, a goal that would still be achievable under the proposals made on Monday, the first source said.

Overall, the assets offered for sale account for a low single-digit percentage of the joint venture's pro-forma sales of 17 billion euros, that source added.

Thyssenkrupp and Tata Steel could limit the field of potential buyers, which might include Salzgitter and ArcelorMittal, to industry players, the source said, adding materials supply contracts could be an added incentive.

(Additional reporting by Foo Yun Chee in Brussels; Editing by Kathrin Jones, Keith Weir and Mark Potter)

By Christoph Steitz and Tom Käckenhoff

Stocks mentioned in the article
ChangeLast1st jan.
ARCELORMITTAL -1.40% 14.732 Delayed Quote.-17.57%
SALZGITTER AG -0.11% 26.14 Delayed Quote.2.46%
TATA STEEL 0.10% 473 End-of-day quote.-9.31%
THYSSENKRUPP 1.02% 12.81 Delayed Quote.-15.25%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on ARCELORMITTAL
08:41aBritish Steel falls into liquidation after failing to secure funding
05:50aEU's Vestager to brief other EU commissioners on steel market
02:20aBritish Steel risks collapse with 25,000 jobs at stake
05/17ARCELORMITTAL : Baffinland Iron Mines Corporation hosts the Qikiqtaaluk Socio-Ec..
05/16ARCELORMITTAL : Ex-dividend day for final dividend
05/12Germany's Thyssenkrupp to seek new steel partners, CEO tells paper
05/09PATRICK THOMAS : ADR Shares End Lower; ArcelorMittal Trades Actively
05/09ARCELORMITTAL : Steelmaker ArcelorMittal downbeat on main Europe market
05/09ARCELORMITTAL : EU Steel Tariffs Can't Halt Plummeting Prices
05/09ARCELORMITTAL : 1Q Profit Dropped Amid Tough Environment
More news
Financials ($)
Sales 2019 74 901 M
EBIT 2019 5 050 M
Net income 2019 3 372 M
Debt 2019 7 878 M
Yield 2019 1,63%
P/E ratio 2019 4,56
P/E ratio 2020 4,38
EV / Sales 2019 0,32x
EV / Sales 2020 0,31x
Capitalization 16 446 M
Duration : Period :
ArcelorMittal Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ARCELORMITTAL
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 29,4 $
Spread / Average Target 82%
EPS Revisions
Lakshmi Niwas Mittal Chairman & Chief Executive Officer
Aditya Mittal President & Chief Financial Officer
Brian E. Aranha CTO, Executive VP, Head-Research & Development
Michel Wurth Non-Independent Non-Executive Director
Vanisha Mittal Bhatia Non-Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
ARCELORMITTAL-17.57%16 446
POSCO--.--%17 149
NUCOR1.56%16 038
SEVERSTAL' PAO--.--%12 661