Deal with Tata Steel still on cards, says Thyssenkrupp
25 Nov 2016
Tata Steel is still interested in the merger of its UK steel operations with Germany's Thyssenkrupp, the latter's chief executive said.
The assurance comes in the aftermath of ex-chairman Cyrus Mistry's ouster, which had put the deal under question.
"The new (Tata) management told us personally it still sees the rationale," Heinrich Hiesinger said at a press conference after the company's 2015-16 results.
A pre-market report from Angel Broking also confirmed the development. It said, "Tata Steel Thyssenkrupp deal to continue in spite of departure of Cyrus Mistry from Tata Sons."
Tata Sons moved to remove Mistry as its chairman in October, in a boardroom battle that has since gone public and turned ugly. Mistry's exit also saw the dissolution of the Group Executive Council, and three high-level executive exits, with one saying that he was removed from his post soon after Mistry's ouster.
Tata Steel and Thyssenkrupp were in talks to merge their UK businesses but the talks were interrupted when Britain decided to leave the European Union in the historical Brexit vote in July this year.
On Friday, Tata Steel's shares were trading at Rs409.70, up Rs11.45 or 2.88 per cent from their previous close. The shares opened at Rs399.90 apiece and climed higher in early morning trade.