Subject category:
Strategy and General Management
Originally published in:
2018
Version: 8-Dec-2017
Length: 11 pages
Data source: Published sources
Abstract
The Thyssenkrupp Tata Steel Joint Venture (JV) had its genesis in the various growth challenges faced by both Tata Steel Europe and Thyssenkrupp AG in Europe in 2017 and highlights the strategic choices available with both the companies to build a sustainable steel business in Europe. The case is set in the competitive but lucrative steel market ecosystem in Europe, where the major players market position was still fluid in 2017. The case also discusses the reasons for the joint venture, the benefits due to synergy, the deal execution process and the post integration challenges before the JV. In December 2017, the Board of Tata Steel Limited in Mumbai, India was reflecting on its decision of a Joint Venture with Thyssenkrupp AG. Was the JV route the best structure of the deal (in comparison to say an acquisition)? What made Thyssenkrupp AG an ideal JV partner? What can be the key challenges in the agenda of building sustainable European business operations? Finally, the Board also discussed the strategies to ensure that the synergy aimed for will be achieved since these synergies were crucial for the success of the entire JV.
Locations:
Industry:
Size:
Tata Steel Group 24.49 Million Tonnes
Other setting(s):
2017
About
Abstract
The Thyssenkrupp Tata Steel Joint Venture (JV) had its genesis in the various growth challenges faced by both Tata Steel Europe and Thyssenkrupp AG in Europe in 2017 and highlights the strategic choices available with both the companies to build a sustainable steel business in Europe. The case is set in the competitive but lucrative steel market ecosystem in Europe, where the major players market position was still fluid in 2017. The case also discusses the reasons for the joint venture, the benefits due to synergy, the deal execution process and the post integration challenges before the JV. In December 2017, the Board of Tata Steel Limited in Mumbai, India was reflecting on its decision of a Joint Venture with Thyssenkrupp AG. Was the JV route the best structure of the deal (in comparison to say an acquisition)? What made Thyssenkrupp AG an ideal JV partner? What can be the key challenges in the agenda of building sustainable European business operations? Finally, the Board also discussed the strategies to ensure that the synergy aimed for will be achieved since these synergies were crucial for the success of the entire JV.
Settings
Locations:
Industry:
Size:
Tata Steel Group 24.49 Million Tonnes
Other setting(s):
2017