Tata in talks with ThyssenKrupp on European steel unit, report says

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.

Last update: Fri, 01/04/2016 - 17:51

More from Business

Financial leaders in Davos optimistic about US, but see trade risk

The US economy will likely profit from the planned policies of its new president, as long as Donald Trump does not...

Facebook to build data centre in Denmark

The Danish city of Odense and social media giant Facebook announced on Thursday the city was to host a new European...

Freight train from China crosses 12,000 kilometres to London

The first Britain-bound freight train from China arrived in London on Wednesday, completing an 18-day trip across...

US prosecutors finalize 7.2-bln-dollar settlement with Deutsche Bank

The US Justice Department announced a 7.2-billion-dollar settlement Tuesday with Deutsche Bank over allegations that...

General Motors announces 1-billion-dollar investment in US workforce

General Motors will join other carmakers in opting to invest and hire inside the United States, the company...