The primary reason for the deal between Thyssenkrupp and Tata Steel was to establish three manufacturing bases in the UK, Netherlands and Germany, said Tata Steel CFO, Koushik Chatterjee.

Saying that the company would adapt to any changes that affects Europe, including Brexit, he said the company was in a strong position as it had strong fundamentals.

Allaying fears about activist investors such as Elliott Capital raising questions about the deal, he said "I think we have a lot of things which will go in favour of this joint venture as and when it kind of gets formed. It has the potential to create value for all shareholders and stakeholders and therefore I think seeing is believing and that is what would come through in the years to come."

Speaking about the Bhushan steel acquisition he said, "If you have to look at the Bhushan Steel acquisition this has been done on a very prudent capital structure."

"We have contributed about Rs 18,000 crore of equity, equity related from Tata Steel and about Rs 16,500 of debt, 5 million plus tonne facility with very strong asset configuration especially on the downstream and our market presence and so far we have being starting our integration program there so I think as far as Bhushan Steel is concerned I think there has been structured on an incremental debt-EBITDA of under 3, so that is certainly resilient," he added.

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First Published:Jul 2, 2018 11:57 PM IST