Tata Steel rose 0.28% to Rs 524.50 at 10:01 IST on BSE after the company and thyssenkrupp announced executive leadership for the planned joint venture.
The announcement was made after market hours yesterday, 17 December 2018.On the BSE, 96,000 shares were traded in the counter so far compared with average daily volumes of 7.19 lakh shares in the past two weeks. The stock had hit a high of Rs 526.20 and a low of Rs 520.10 so far during the day. The stock hit a 52-week high of Rs 747.25 on 31 January 2018. The stock hit a 52-week low of Rs 486.90 on 11 December 2018.
Tata Steel and thyssenkrupp have decided on the members of the future management board for the planned European steel joint venture between the two companies.
Andreas Goss, currently chief executive officer (CEO) of thyssenkrupp's steel division, will be the future chief executive officer of the planned joint venture and chair the management board of thyssenkrupp Tata Steel B.V.. Hans Fischer, currently the CEO of Tata Steel Europe, will be the Deputy CEO & chief technology officer of the joint venture. Sandip Biswas, currently the group executive vice president finance of Tata Steel is the designated chief financial officer while Premal Desai currently the chief financial officer of thyssenkrupp Steel Europe will be the chief strategy officer of the joint venture. Apart from the above appointments, it is planned to announce the next management level for the joint venture early in the new year. The management board and the future top leadership team will be responsible for the planning and execution of the post-merger integration and the long-term business strategy once the planned joint venture has received the necessary regulatory approvals and after closing.
Tata Steel and thyssenkrupp AG signed definitive agreements in June 2018 to combine their European steel businesses in a 50/50 joint venture. The proposed new company, to be named thyssenkrupp Tata Steel B.V., headquartered in Amsterdam area will be positioned as a leading pan-European high-quality flat steel producer with a strong focus on performance, quality and technology leadership. The joint venture is subject to merger control clearance in several jurisdictions, including in the European Union.
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.
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.
Tata Steel's consolidated net profit jumped 206.18% to Rs 3116.20 crore on 33.94% rise in net sales to Rs 42946.98 crore in Q2 September 2018 over Q2 September 2017.
Tata Steel is currently the world's second-most geographically diversified steel producer.
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