After having its arguments dismissed by Europe's second-highest court, Thyssenkrupp has lost its battle against the European Union's antitrust veto of its proposed historic joint venture with Tata Steel.
Through the joint venture, which would have produced Europe's second-largest steelmaker behind ArcelorMittal, the two businesses had hoped to address overcapacity and other issues in the steel market in 2019.
However, the European Commission asserted that the agreement would lead to considerable price increases and sought solutions.
The EU competition regulator blocked the merger in 2019 after determining that the businesses had not taken enough action to resolve concerns. Thyssenkrupp then appealed the decision to the General Court in Luxembourg.
The General Court "rejects all the grounds offered by the undertaking in its ruling today and affirms the Commission's decision," according to the Court.
The highest court in Europe, the Court of Justice of the European Union, is where Thyssenkrupp may appeal legal issues.
Thyssenkrupp said it had taken notice of the decision and has subsequently studied and rejected a plan to sell its steel division to Liberty Steel in the United Kingdom.
The business stated, "We continue to believe that the EU Commission's decision to ban the joint venture with Tata Steel Europe in 2019 was an overreaction."
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.