Thyssenkrupp, Tata Steel merge Europe operations

Essen, Germany

GERMANY'S Thyssenkrupp and India's Tata Steel agreed on Wednesday to merge their European steel operations in a preliminary deal that would create the continent's No 2 steelmaker after ArcelorMittal.

The deal will not involve any cash, Tata Steel said, adding that both groups would contribute debt and liabilities to achieve an equal shareholding and remain long-term investors.

The companies said that they need to consolidate to address overcapacity in the European steel market, which …