Indian steel producer Tata Steel is said to be in talks with ThyssenKrupp on entering the Germany company's European steel division, German media reported Friday, citing unnamed government sources in Berlin.
ThyssenKrupp and Tata declined to comment on the report that appeared in German regional newspaper Rheinische Post, which claimed that talks exploring several options were well underway.
The preferred option is a joint venture between the two companies, with Tata later increasing its stake, according to the report.
Shares in steel companies on the German market were buoyed by the rumours, with ThyssenKrupp shares rising by more than 4 per cent by midday, and shares in the country's number two steel manufacturer Salzgitter up 2 per cent.
Analysts consider a Tata engagement in Germany to be possible, particularly in consideration of the Indian firm's recent announcement that it would cease operations in Britain.