London: Tata Steel could be considering withdrawing from talks on a planned merger of its European business with German conglomerate Thyssenkrupp, British media reported.
The Sunday Times newspaper said that Tata Steel is considering a “daring plan to break off a planned merger” of its European business with those of the German conglomerate.
Such a deal with the German steel giant, talks on which were announced by Tatas last year, could lead to the formation of a European steel behemoth with blast furnaces in Wales, the Netherlands and Germany.
According to the paper, however, the deal has been taking time to close as Tata Steel tries to solve the problem of its £15 billion British steel pensions scheme. The company has been engaged with stakeholders in Britain to find a structural solution. Earlier this year, ThyssenKrupp had said Tata Steel would have to find a “viable solution” for its “high pension obligations” in Britain before going ahead with their consolidation talks. — IANS