Frankfurt: German industrial conglomerate Thyssenkrupp said on Friday it had abandoned plans to merge its steel business in Europe with the Tata group because of expected resistance from the European Commission. "Thyssenkrupp and Tata Steel expect that the planned joint venture of their European steel activities will not go ahead due to the Commission's continuing concerns," the German company said in a statement. The announcement saw Thyssenkrupp's stock soar, up 13.48% to 12.75 euros ($14.31), by around 1000 GMT on Frankfurt's stock exchange. Also read: Tata Steel workers no longer convinced about Thyssenkrupp mergerBoth Thyssenkrupp and Tata have declined to offer further concessions to Brussels which they say would "affect the synergies expected from the merger" to the point of compromising its economic relevance. The aim of the joint venture had been to create the second-largest European steel company behind multinational giant ArcelorMittal and to join forces in the face of the surge of Chinese steel.

Source: Mint May 10, 2019 11:03 UTC