Skip to main content

Posts

Showing posts from September 20, 2017

Tata’s Hard Choice & Challenges Cross Border Data - Today Current Affairs Topics

Tata’s Hard Choice What is the issue? Tata Steel’s recent merger is a proof of hard commercial considerations in overseas acquisitions. What is the merger about? Tata Steel had announced its tentative plans to merge their European steel operations in a 50:50 joint venture. Tata Steel and Germany’s ThyssenKrupp AG have planned for this merger. This merger will emerge as the second largest steel producer in the high value-added European market. These companies clarified that this merger is driven more by “industrial and strategic logic” than the need for financial engineering or job cuts. What is the need for the merger? This merger is more about reducing exposure to the barely-growing and over-supplied European market. Tata Steel is keen to free up the capital from its overseas plants in order to double its Indian capacity. Global operations have become a millstone around Tata Steel’s neck. ThyssenKrupp has been progressively shedding its commodity businesses to f