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Thyssenkrupp labour boss affirms opposition to Tata merger
May 17, 2017 / 7:20 AM / in 5 months

Thyssenkrupp labour boss affirms opposition to Tata merger

DUESSELDORF, Germany, May 17 (Reuters) - 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 pension liabilities.

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

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