Sweden's SSAB exits deal talk with Tata Steel Netherlands

Swedish steelmaker SSAB said on Friday it had concluded talks concerning a potential acquisition of Tata Steel's IJmuiden steel mill and related downstream assets, and decided not to move forward. SSAB confirmed in November it was in talks over a potential acquisition of Tata Steel's Dutch assets, but such a deal, a major undertaking for the Swedish steelmaker, had raised concerns among some SSAB investors and analysts.

Swedish steelmaker SSAB said on Friday it had concluded talks concerning a potential acquisition of Tata Steel's IJmuiden steel mill and related downstream assets, and decided not to move forward.

SSAB confirmed in November it was in talks over a potential acquisition of Tata Steel's Dutch assets, but such a deal, a major undertaking for the Swedish steelmaker, had raised concerns among some SSAB investors and analysts. The Swedish company has attracted investors in recent years with its green steel venture Hybrit, and investors have reportedly been concerned about whether a deal with Tata Steel would be consistent with its green steel strategy. "We carefully evaluated Tata Steel IJmuiden and have concluded that an acquisition would be difficult for technical reasons," SSAB Chief Executive Martin Lindqvist said in a statement.

"We cannot align Tata Steel Ijmuiden with our sustainability strategy in the way desired."