Swedish steelmaker SSAB has ended discussions with India’s Tata Steel over potential acquisition of IJmuiden plant, or Tata Steel Netherlands, the Stockholm-headquartered group stated Jan. 29.
“After deeper analysis and discussions, it became clear that there were limited possibilities to integrate IJmuiden into the SSAB strategic framework,” SSAB said in a statement. “Discussions with Tata Steel have therefore concluded.”
The Swedish company cited its desire to move toward fossil-free steel production as one of the reasons behind its decision.
“The group’s goal is to be the first in the world, in 2026, to supply fossil-free steel to market and to be a fossil-free company by 2045,” SSAB stated.
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SSAB walks away from costs
Prospective synergies would not justify necessary costs and investments into IJmuiden for SSAB’s desired transformation, the Swedish group added.
Tata Steel acknowledged SSAB’s withdrawal from interest in IJmuiden. However, Tata said it remains committed to a strategic resolution for its European portfolio.
“Currently, around two third of the business of Tata Steel is based in India with best in class, highly cost competitive assets and strong cash flows and Tata Steel remains committed to undertake significant de-leveraging in FY21 and beyond,” the Indian group said.
Tata Steel’s European assets include IJmuiden and the integrated Port Talbot works, or Tata Steel UK.
SSAB originally announced in November that it was speaking with Tata about acquiring IJmuiden. However, at the time it warned there was no guarantee of any deal.