DUESSELDORF, Germany May 17 Tata Steel's
latest pensions deal in Britain does not lessen
Thyssenkrupp workers' opposition to a possible merger
of the two companies' European steel operations, Thyssenkrupp's
works council chief said.
"Now a joint venture really doesn't make any sense," Wilhelm
Segerath told Reuters on Wednesday.
Tata on Tuesday agreed the main terms of a deal to cut
benefits for its British pension scheme, which had been seen as
a major stumbling block in the merger talks because Thyssenkrupp
is opposed to taking on 15 billion pounds ($19.4 billion) in UK
Under the deal, Tata will plough 550 million pounds into the
British Steel Pension Scheme (BSPS). At the same time, Tata will
give the BSPS a 33 percent equity stake in its UK business.
"That doesn't remove the risk posed by the pension
liabilities," Thyssenkrupp's Segerath said.
($1 = 0.7739 pounds)
(Reporting by Tom Kaeckenhoff; Writing by Maria Sheahan;
Editing by Edward Taylor)