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Thyssenkrupp, Tata Steel reach Europe steel merger deal

Thyssenkrupp, Tata Steel reach Europe steel merger deal

BERLIN (AP) — Germany's Thyssenkrupp says it has reached a preliminary deal with Tata Steel of India to merge the two companies' European steel operations in a joint venture.

Thyssenkrupp said the firms signed a memorandum of understanding Wednesday to form the 50-50 joint venture. Negotiations about details of the deal are to be concluded in time for a formal signing of the transaction at the beginning of 2018, and the merger will require approval from the companies' boards and from antitrust authorities.

The new entity is to be called Thyssenkrupp Tata Steel and will be headquartered in the Amsterdam region. Thyssenkrupp said that up to 2,000 administrative jobs and up to 2,000 jobs in production will likely be cut, with the impact "jointly shared between both partners."