June 27, 2018 / 12:08 PM / 2 months ago

Thyssenkrupp, Tata Steel reach compromise in steel JV talks - sources

DUESSELDORF/FRANKFURT/LONDON, June 27 (Reuters) - T hyssenkrupp and Tata Steel are closing in on a deal to combine their European steel units this week, four people familiar with the talks told Reuters.

Talks to hammer out the final details are progressing well and a compromise has been reached for how to close a valuation gap that has emerged between both businesses, three of the people said, without elaborating.

Sources told Reuters this month that options included a cash payment to Thyssenkrupp, changing the 50-50 ownership structure of the venture, lowering the debt to be transferred to it, or limiting dividend payments to Tata Steel for a number of years.

Thyssenkrupp declined to comment. Tata Steel was not immediately available for comment. (Reporting by Tom Kaeckenhoff, Arno Schuetze, Christoph Steitz and Maytaal Angel; Additional reporting by Promit Mukherjee in Mumbai; Editing by Maria Sheahan)

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