Swedish steelmaker SSAB has ended talks over a potential acquisition of Tata Steel's Dutch steel mill, it said on Friday, adding a fresh twist to the ongoing consolidation of Europe's steel sector. SSAB announced in November that it was in talks to buy IJmuiden, raising funding concerns among some analysts and SSAB investors about the $2 billion to $3 billion deal. "We carefully evaluated Tata Steel IJmuiden and have concluded that an acquisition would be difficult for technical reasons," SSAB Chief Executive Martin Lindqvist said.
Tata Steel's European works council on Friday said it expected the separation of Tata Steel's Dutch and British operations to continue, despite Swedish steelmaker SSAB's decision to halt talks over the potential acquisition of Tata's Dutch steel mill. "It is unclear how we will proceed, but we expect the separation to continue," works council chair Cinta Groos told Reuters. Groos said she did not expect takeover talks with ThyssenKrupp to be revived, after the European Commission blocked a merger between Tata's European activities and the German company in 2019.
Over the weekend Sanjeev Gupta’s company announced that Swedish firm SSAB was negotiating with Tata over buying its assets in the Netherlands.