Tata Merger

Making German Steel Great Again

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Mid-sized steel company Georgsmarienhütte wants to forge a new European steel giant. Picture source: Reuters.

With steel prices creeping back from historic lows due to a global supply glut, a German steel executive is trying to gain government support for the creation of a “Deutsche Steel” giant that would place the country’s steel mills under one roof and disrupt the impending merger of ThyssenKrupp’s steel interests with Tata of the UK.

Industry sources told Handelsblatt that Jürgen Grossmann, a former electric utility executive who now runs a mid-sized steel company called Georgsmarienhütte, held talks with officials in the state government of North Rhine-Westphalia last week about getting government-backing for the plan.

The sources said Mr. Grossmann is proposing a merger of his company, GMH Holding, with ThyssenKrupp’s steel division as well as the country’s second-largest steel maker, Salzgitter AG.

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