Thyssenkrupp Steel Deal With Tata to Be Signed by End-June: CFO

German company thyssenkrupp expects to sign a planned deal to merge its steel business with Tata Steel Europe by the end of June, with completion by the end of the year, its chief financial officer said Tuesday.<br />Guido Kerkhoff, speaking on a quarterly earnings call, said the schedule depended on competition authorities' response.<br />A strategic...

German company thyssenkrupp expects to sign a planned deal to merge its steel business with Tata Steel Europe by the end of June, with completion by the end of the year, its chief financial officer said Tuesday.

Guido Kerkhoff, speaking on a quarterly earnings call, said the schedule depended on competition authorities' response.

A strategic update on the company will be presented to the supervisory board following the signing, Kerkhoff said.

Asked by S&P Global Platts if thyssenkrupp will sell assets as joint venture partner Tata Steel has been preparing to do in order to pave the way for the merger, Kerkhoff said that would be up to the antitrust authorities.

In terms of the deal's timeline, Kerkhoff said: "I think the antitrust authorities are now more familiar with the steel industry. Following the signing, six months is plenty of time for the authorities. We are significantly smaller [than ArcelorMittal-Ilva]."

The European Commission has delayed ArcelorMittal's planned acquisition of Italian steelmaker Ilva several times.

RESULTS

Thyssenkrupp's steel division saw sales from January to March -- the company's second quarter -- rise 2.6% year on year to Eur2.4 billion ($2.85 billion)), while order intakes grew 1.7% to Eur2.48 billion.

Sales were mainly driven by higher prices and a pick-up in demand.

Crude steel production at thyssenkrupp steelworks increased 4% year on year to 2.93 million mt, while production at Huettenwerke Krupp Mannesmann -- which the company owns jointly with Salzgitter and Vallourec -- dropped 13.4% to 631,000 mt.

Shipments of hot-rolled material fell 2.5% year on year to 1.09 million mt, while cold-rolled shipments were down 4.7% to 1.8 million mt.

The trading unit Materials, which also includes special steelmaker Acciai Speciali Terni, saw higher sales as well from Eur3.65 million Q2 last year to Eur3.9 billion Q2 this year.

Shipments at Terni grew 6.4% to 248,000 mt, while shipments at the materials unit rose 5.7% to 2.95 million mt.

Source: www.platts.com