SSAB Shareholders Sceptical over Tata Steel Netherland Deal
Swedish business daily Dagens Industri reported that Swedish steel maker SSAB AB has run into a hurdle with two large SSAB shareholders mining
Swedish business daily Dagens Industri reported that Swedish steel maker SSAB AB has run into a hurdle with two large SSAB shareholders mining company LKAB and asset manager Industrivarden owning 20.9% of SSAB expressing reservations about the deal with Tata Steel Netherland. The report cited sources as saying that “There are several issues that could potentially stall the deal. This includes concerns around higher carbon footprint for the Swedish steelmaker which will come with the acquisition, and this is something a section of SSAB’s shareholders are not comfortable with as things stand."
The report added that “SSAB has told Tata Steel that it may not be able to close the deal within the six-month internal deadline agreed to in November. But the deal is not off the table yet.”
A potential merger between SSAB and Thyssenkrupp also did not go ahead for similar reasons.
Swedish steelmaker SSAB confirmed on November 15, 2020, that it is in discussions with Tata Steel Group concerning a potential acquisition of Tata Steel Europe’s IJmuiden steel mill and related downstream assets. It said “SSAB has participated in several different discussions concerning consolidations in the European steel industry. The discussions with Tata are on-going but no decisions have been made. There can be no certainty that any transaction will materialize, nor as to the terms of any such potential transaction. Further announcement will be made in due course.”
Tata Steel while announcing Q2 results said that “The company has initiated the process to separate Tata Steel Netherlands and Tata Steel UK and will pursue separate strategic paths for the Netherlands and UK business in the future. Tata Steel continues its dialogue with the UK Government on potential measures to safeguard the long-term future of Tata Steel UK and is also reviewing all options to make the business self-sustaining without the need for