Thyssenkrupp abandons Tata merger plans, cuts 6,000 jobs

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Parties assume European Commission will not approve joint venture

German industrial conglomerate Thyssenkrupp said on Friday it was scrapping merger plans with Indian steel giant Tata and would slash 6,000 jobs worldwide in a structural shakeup.

Having shelved the plans and ruled out offering more concessions to Brussels to get a green light, Thyssenkrupp said it was now aiming for a stock market listing of its elevators business as part of a restructuring. The group had planned 4,000 job losses, half of them in Germany, if the merger had been successful, but its collapse means the conditional agreement already negotiated with the unions “is no longer valid”, admitted Kerkhoff.

The flurry of announcements saw Thyssenkrupp’s stock soar, up 22.43% to €13.76 by early afternoon on Frankfurt’s stock exchange, while Tata Steel shares closed down 6.1% in Mumbai.

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