Tata Steel and German ThyssenKrupp reached a merger agreement, and Tata Steel will become the second largest steel manufacturer in Europe, second only to ArcelorMittal.

ThyssenKrupp mentioned that it agreed to hold half of equity, set up a joint venture, merge European steel business of both parties, and change its name to ThyssenKrupp Tata. It was understood that the company's headquarters will be located in the Netherlands, with total labor force about 48,000 employees, annual steel production of about 21 million tons, and revenue of 15 billion euros roughly.

The two sides have negotiated for more than two years and looked forward to jointly maintaining annual savings of 40 billion euros. ThyssenKrupp mentioned that the joint venture with Tata Steel was an important milestone in transformation of the group and significantly improved the company's finance, which was still pending approval by the EU and other judicial authorities.

On the other hand, Tata Steel had the largest steel mill in the UK with 4,000 employees. Chief executive of the mill said that both two companies might cut 2,000 jobs, including those initially engaged in sales and marketing. Last year, steel industry environment deteriorated, and Tata Steel listed for sale all its businesses in the UK.