Sweden based SSAB ends talks to buy TATA steel's Dutch unit
Sweden based SSAB ends talks to buy TATA steel's Dutch unit
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Sweden-based SSAB who showed interest, has ended talks to buy the former’s Netherland business, including Ijmuiden steelworks. During the Q4 of 2020, SSAB announced it was in discussions with Tata Steel concerning a possible acquisition of the IJmuiden steel mill and associated downstream assets. In a statement on Friday, SSAB said after deeper analysis and discussions, it became clear there were limited possibilities to integrate IJmuiden into the SSAB strategic framework. Discussions with Tata Steel have therefore concluded, statement added. 

Martin Lindqvist, President and CEO at SSAB said, “We have carefully evaluated Tata Steel IJmuiden and have concluded that an acquisition would be difficult for technical reasons. We cannot be sufficiently certain that we could implement our industrial plan with the preferred technical solutions as quickly as we would wish". He added, “We cannot align Tata Steel with Ijmuiden our sustainability strategy in the way desired". The view was most likely that the transaction would not meet SSAB financial expectations.

SSAB said the point behind the discussions concerning Tata Steel IJmuiden was based on our customers’ clear desire for a strong supplier of a broad range of fossil-free steel. Highlighting that the transition to fossil-free steel is a top priority for SSAB, Lindqvist said: “We are continuously on the lookout for possibilities to invest and step up the pace of this transition". The failure in SSAB talks comes as a setback for the Tatas as, it was looking at deleveraging its highly debt-ladden assets, especially in the overseas market. However, with steel market firming up, fresh opportunities could be explored later, sector experts said.  TATA shares declined post announcemnet from SSAB. 

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