The European Commission has blocked the proposed merger between Tata Steel and ThyssenKrupp under the EU Merger Regulation. This decision comes after in-depth investigation (phase-II) by the Commission of the proposed joint venture, which would have combined the flat carbon steel and electrical steel activities of ThyssenKrupp and Tata Steel in the European Economic Area (EEA). 

The major concerns for the Commission were- 

• Metallic coated and laminated steel products for packaging (tinplate, electrolytic chromium coated steel and laminated steel), where the proposed merger would have created a market leader in a highly concentrated industry, particularly in tinplate, which is the most important packaging steel product in the EEA by volume.
• Automotive hot-dip galvanised steel products, where the proposed merger would have eliminated an important competitor in a market where only a few suppliers can offer significant volumes of this steel.

 For details, Commission’s press release.