ThyssenKrupp AG's anticipated deal signing over a joint venture with Tata Steel Ltd. by the end of June could be pushed back as Tata Steel's Dutch works council takes its time to assess the venture, Reuters reported May 18.
The 50/50 European steel joint venture was announced in September 2017 and was initially slated to close in March but was pushed back to the end of June over labor agreements the companies are attempting to secure to prevent future labor disputes.
Dutch works council President Frits van Wieringen told Reuters that the assessment would take up to three months from its May 1 start date.
According to the report, Tata Steel Netherlands reached a preliminary agreement with Dutch unions in March after assuring workers that job losses will be limited to between 300 and 400 supporting functions, while excluding any forced redundancies until 2026. The Dutch division was also guaranteed that it would remain an independent operation within the joint venture, with control over its own profits.
