New Delhi, May 10 (IANS): Tata Steel on Friday said that the proposed joint venture with Thyssenkrupp will not go ahead as the "European Commission (EC) does not intend to clear the venture".

A report to this effect led to the Tata Steel scrips falling the most on the bourses -- closing over 6 per cent lower at Rs 487 per share on the BSE.

"Based on the feedback received from the Commission, it is increasingly clear that the Commission is not intending to clear the proposed joint venture as it expects substantial remedies in the form of sale of assets of the proposed venture," Tata Steel said in a regulatory filing.

It said that both the entities were in intense engagement with all regulatory authorities and in particular the Commission to seek clearance, and based on the statement of objections published by the Commission, a comprehensive package of remedies was offered covering all the areas of concern highlighted by the EC.

However, the "feedback from the Commission based on the market test it has undertaken suggests that it is unlikely to clear the proposal in spite of the significant remedies offered".

Tata Steel and Thyssenkrupp had signed a definitive agreement on June 30 last year combining the steel businesses in Europe to create a 50:50 pan European joint venture company focusing on customer centricity, technology and sustainability.