Tata Steel and ThyssenKrupp have agreed a merger which will create Europe’s second-biggest steelmaker, after Arcelor Mittal.
German-owned ThyssenKrupp’s supervisory board gave the go-ahead to the joint venture on Friday.
The deal will mean Indian-owned Tata Steel’s UK plants are merged into a pan-European venture with annual sales of about £13bn.
These include the UK’s biggest steelworks at Port Talbot in Wales.
“The joint venture with Tata Steel is an important milestone for the transformation of Thyssenkrupp to an industrials and service group and will lead to a significant improvement of the financial figures of Thyssenkrupp,” the group said in a statement.