Economy

Thyssenkrupp, Tata Steel reach compromise in steel JV talks

Updated : June 28, 2018 06:37 AM IST

Thyssenkrupp and Tata Steel are closing in on a deal to combine their European steel units this week, four people familiar with the talks told Reuters.

Talks to hammer out the final details are progressing well and a compromise has been reached for how to close a valuation gap that has emerged between both businesses, three of the people said, without elaborating.

Sources told Reuters this month that options included a cash payment to Thyssenkrupp, changing the 50-50 ownership structure of the venture, lowering the debt to be transferred to it, or limiting dividend payments to Tata Steel for a number of years.

Thyssenkrupp declined to comment. Tata Steel was not immediately available for comment.

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