In a bid to remain competitive, Thyssenkrupp and India's Tata Steel signed a deal Saturday to become Europe’s second-largest steel firm. The new formed alliance, called Thyssenkrupp-Tata Steel, will employ around 50,000 workers. Combined annual sales, based on existing business, will add up to about 17 billion euros ($19.9 billion).
Hiesinger claimed savings could amount to as much as 500,000 euros each year as production sites can be used more efficiently and research and design (R&D) costs are to be split.
The deal, which involved no cash, was struck after a majority, but not unanimous, vote by Thyssenkrupp's supervisory board. It will see the loss of an estimated 4,000 jobs.
Following the announcement, the share price of Thyssenkrupp fell around 1.4 percent when markets opened for trade Monday. On the Bombay Stock Exchange in India, shares of Tata Steel fell by about 1 percent.