Deals
Thyssenkrupp-Tata Deal Talks Said Focused on U.K. Unit Value
- Thyssenkrupp said to require plan to fund Tata’s U.K. pensions
- Tata wants to use U.K. unit to raise size of stake in venture
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Thyssenkrupp AG and Tata Steel Ltd.’s attempts to combine their European steel operations are centered on how to value Tata’s troubled U.K. assets, according to people familiar with the matter.
While Thyssenkrupp is open to integrating Tata’s British unit in the joint venture, the Essen, Germany-based company wants Tata to find a way to fund its U.K. pension-scheme obligations as a precondition, the people said, asking not to be identified because the negotiations are private. Tata wants to include the U.K. division in the Thyssenkrupp project, which would give it a bigger stake in the overall venture, one of the people said.