Market pro company Tata Steel which is considered to be one of the biggest companies in India will soon be appointing the next Chief Executive Officer (CEO) of Thyssenkrupp Tata Steel. According to the information given by the company in a press release, Andreas Goss will be the future chief executive officer of Tata Steel Europe’s planned joint venture with European steel maker Thyssenkrupp.
Apart from the above appointments, Tata Steel said in its release that it will announce the next management level for the joint venture early in the New Year.
The release stated: “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.”
Until the completion of the merger 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.
The European Commission has launched a deeper investigation into the Tata Steel-Thyssenkrupp merger over concerns that the joint venture would gain majority market share and hence affect competition in steel for the automotive sector, metallic coated steel for packaging and grain-oriented electrical steel.
At the time of the announcement of the joint venture, the companies had said that due diligence and fairness opinions had confirmed the economic viability of the new company and the expected annual recurring synergies of approximately €400-500 million.
“After closing, the synergies will be generated in several areas, including procurement, consolidation of overheads and through a better asset utilization. It is expected that there will be opportunities in capital expenditure management and working capital optimisation to realize additional synergies.”