Mumbai, Jun 30 (IANS): Tata Steel and Thyssenkrupp AG on Saturday signed definitive agreements to combine their European steel businesses in a 50:50 joint venture (JV) in a new company.

The proposed new firm, to be named Thyssenkrupp Tata Steel BV, will be positioned as a leading pan European high quality flat steel producer with a focus on performance, quality and technology leadership.

"The joint venture will create a strong pan European steel company that is structurally robust and competitive. This is a significant milestone for Tata Steel and we remain fully committed to the long-term interest of the joint venture company. We are confident that this company will create value for all stakeholders," Tata Steel Chairman Natarajan Chandrasekaran said.

Commenting on this, Heinrich Hiesinger, CEO of Thyssenkrupp AG, said: "We will create a highly competitive European steel player -- based on an industrial logic and strategic rationale. We will secure jobs and contribute to maintaining value chains in European core industries."

However, the transaction is subject to merger control clearance in several jurisdictions, including the European Union (EU). Until completion of the JV process, two companies still operate as separate entities and as competitors.

Only after completion of the JV process, Thyssenkrupp Steel Europe and Tata Steel in Europe will be integrated as one company.