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Shares of Tata Steel gained the most in 3 weeks as Thyssenkrupp deal is nearing completion. The stock climbed as much as 3.1 per cent to Rs 565.7, highest since June 21. The stock posted biggest intraday percentage gain since June 7.
Tata Steel and ThyssenKrupp are close to agreeing terms on a merger that will create Europe's second-biggest steelmaker, after Arcelor Mittal.
According to sources, the deal - which has been under negotiation for more than a year - is likely to be concluded in the next few days. It will see Tata Steel's UK plants merged into a pan-European venture with annual sales of about £13 billion.
In the revised deal, Thyssenkrupp will own about 55 per cent of the equity in the new company and Tata will have 45 per cent. The changes happened after Thyssenkrupp’s activist shareholders pressured the management to squeeze better terms from the deal, which was originally a 50-50 split. The voting rights will be equally split.
The talks over the joint venture have dragged on for more than a year and faced opposition from labour representatives, as well as activist shareholders. Thyssenkrupp’s labor representatives had said on Thursday they would vote in favour of the joint venture, paving the way for the deal to go through.
Tata Steel stock has risen nearly 17 per cent in 12 months up to Thursday.
(With inputs from Reuters)
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