Thyssenkrupp, Tata Steel get EU extension of joint venture remedy deadline

FILE PHOTO: A steel worker of Germany's industrial conglomerate ThyssenKrupp AG takes a sample of raw iron from a blast furnace at Germany's largest steel factory in Duisburg, Germany, January 28, 2019. REUTERS/Wolfgang Rattay

FRANKFURT (Reuters) - Thyssenkrupp and Tata Steel have agreed with the European Commission to extend a deadline to submit remedies in exchange for regulatory approval for a planned European steel joint venture, Thyssenkrupp said.

The deadline, which sources said was due to expire later on Wednesday, will be extended by eight working days, Thyssenkrupp said. This will move the overall deadline for a decision to May 13 from April 29, the Commission said on its website.

“In the ongoing merger control proceedings the deadline to submit a proposal, through which Thyssenkrupp and Tata Steel will address the Commission’s concerns, is imminent,” a spokesman for Thyssenkrupp said in e-mailed comments.

“To adequately draw up the proposal the partners have agreed to apply for an extension by 8 working days as part of the constructive dialogue with the Commission.”

Thyssenkrupp confirmed it remains confident that the transaction, which will create Europe’s second-largest steelmaker after ArcelorMittal, can be completed in the spring.

Sources told Reuters this month that the companies are unlikely to make far-reaching concessions that will jeopardize the economic and strategic rationale of the deal.

Reporting by Christoph Steitz; editing by Thomas Seythal and Alexander Smith