Tata SteelNSE 0.05 % and ThyssenKrupp AG on Monday announced the top leadership team for their proposed joint venture in Europe. Andreas Goss, currently CEO of ThyssenKrupp’s Steel division, has been designated as the future CEO of the proposed JV. He will also serve as chairman of the management board of ThyssenKrupp Tata Steel BV, the proposed name of the new JV.
Hans Fischer, currently CEO of Tata Steel Europe, has been named as the deputy CEO & Chief Technology Officer of the JV, an official statement said. Sandip Biswas, currently Tata Steel’s Group Executive Vice President Finance will be the CFO, while Premal Desai, currently CFO of ThyssenKrupp Steel Europe will be the Chief Strategy Officer of the JV. The two companies are slated to announce the next management level for the joint venture early in the new year.
The European Commission is currently conducting an in-depth investigation into the proposed joint venture, which is subject to merger control clearance in several jurisdictions, besides the European Union. Tata Steel had recently said it expects the proposed merger-related formalities to get over by March 2019.
Tata Steel and ThyssenKrupp AG had earlier in June 2018, signed definitive agreements to combine their European steel businesses
in a 50:50 joint venture. The proposed new company, which will be headquartered in Amsterdam area, is tipped to be Europe’s second largest steel company.
Commenting on the new appointments, T V Narendran, CEO and Managing Director of Tata Steel, said: “This marks an important step forward in our preparations towards establishing the planned joint venture.” Guido Kerkhoff, CEO of ThyssenKrupp said: “I am fully convinced that this Board will successfully lead the integration of the Joint Venture given their extensive technical and operational expertise as well as their broad intercultural experiences. They will optimally set up the joint venture to address future challenges of the industry and meet the needs of the customers.”
“Both companies remain committed to constructive engagement with the European Commission as part of the ongoing regulatory review process. Both parties are working together to ensure the success of this transaction as soon as possible,” the official statement said.
It further added that until the completion of the joint venture process, ThyssenKrupp Steel Europe and Tata Steel in Europe will continue to operate as separate companies and as competitors and the incumbent organisation of the respective companies will continue to operate as currently. The members of the designated Management Board will continue in their existing roles within their businesses until the formation of the joint venture post all regulatory approvals, it said.
Source: Economic Times