ThyssenKrupp files suit over EU veto of Tata tie-up

Berlin, Aug 22 (AFP) German industrial giant ThyssenKrupp said Thursday it has filed a complaint at an EU court against the European Commission for blocking its plan to merge with Indian group Tata Steel. "We regret the European Commission's decision and regard it as too far-reaching and wrong. That is why we are filing a complaint," said Donatus Kaufmann, member of ThyssenKrupp's board.

The European Union's powerful anti-trust authority had in June vetoed the deal, finding that it would have "reduced competition and increased prices for different types of steel". It also found that proposed solutions would not adequately mitigate the problem.

But ThyssenKrupp has now turned to the General Court of the European Union, as it argued that the Commission has "set out a restrictive market definition that unduly extends the scope of the existing competition law". The German company also claimed the European Commission had failed to take into "adequate account the structural importance of imports into Europe".

"Overcapacities and high import pressure from Asia create an environment in which the planned joint venture with Tata Steel would not have impaired competition," said Kaufmann. The European steel industry has been hit by a wave of problems, including overcapacity, cheap Asian imports and punishing US tariffs.

ThyssenKrupp expects to post a loss for 2019. (AFP) SCY SCY