1. Skip to content
  2. Skip to main menu
  3. Skip to more DW sites

ThyssenKrupp sues EU for blocking Tata merger

August 22, 2019

German steel giant ThyssenKrupp has said the European Commission was "too far-reaching and wrong" in blocking a merger with Tata Steel. ThyssenKrupp has filed a complaint against the Commission's decision.

German steel company ThyssenKrupp's logo
Image: picture-alliance/dpa/P. Seeger

German industrial giant ThyssenKrupp on Thursday said it had filed a complaint with an EU court against the European Commission for blocking its plan to merge with Indian group Tata Steel.

In June, the Commission vetoed the deal, saying the proposed merger would have "reduced competition and increased prices for different types of steel."

The EU's executive arm also found that the potential solutions put forward by ThyssenKrupp and Tata Steel were insufficient to address the problems.

"We regret the European Commission's decision and regard it as too far-reaching and wrong," said Donatus Kaufmann, a member of ThyssenKrupp's board. "That is why we are filing a complaint." 

Read more: The long road to 'greener' steel

The merger between Thyssen-Krupp and Tata has been called off

Thyssenkrupp filed the complaint with the General Court of the European Union (EGC), saying that it "does not share these concerns" and that "the Commission has for the first time set out a restrictive market definition that unduly extends the scope of the existing competition law."

The company also claimed the European Commission had failed to take into "adequate account the structural importance of imports into Europe."

"Overcapacities and high import pressure from Asia create an environment in which the planned joint venture with Tata Steel would not have impaired competition," Kaufmann said.

The European steel industry has been hit by a wave of problems, including overcapacity, cheap Asian imports and harsh US tariffs.

law/sms (AFP, dpa)

Every evening, DW's editors send out a selection of the day's hard news and quality feature journalism. You can sign up to receive it directly here.