Why Thyssenkrupp wants India’s Tata Steel so badly
The CEO of German producer wants to fold its loss-making steel operation into the Indian company in bid to eventually exit sector
London/Frankfurt — Thyssenkrupp’s CE is pushing for a deal to fold its steel operations into a joint venture with India’s Tata Steel as early as September, after two years of talks, say sources. The talks were more advanced than previously thought, the sources said. With earnings from Thyssenkrupp’s industrials businesses sound and those at the steel unit weak due to structural overcapacity in the sector, CE Heinrich Hiesinger is facing pressure from investors to deliver the merger. "The fiscal year will come to an end soon [in September] and Hiesinger wants to have a story for investors. If it would not come to a merger, it would be a severe defeat for [him]," a German union source said. Hiesinger has staked his reputation on transforming Thyssenkrupp from a loss-making steel maker into a diversified industrials group, with steel now contributing just less than a quarter of revenues. His ultimate aim is for Thyssenkrupp to exit the steel business altogether. "He [Hiesinger] has inv...
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