Steel giants set to merge

BBC reports that India’s Tata Steel and German rival, Thyssenkrupp, have taken the first step towards merging their European steel operations.

The deal could create Europe’s second-largest steel group, aft

er ArcelorMittal. The report claims that the two companies have been in negotiations since last year, when Tata scrapped plans to sell off its UK operations.

The firms have signed a memorandum of understanding that proposes a 50/50 joint venture, leading to annual cost savings of up to €600m (£533m; $720m).

The two partners expect the move will require a reduction in workforce of about 4,000 jobs, with half coming from administration and half from production. The job losses will be shared evenly between the two companies.