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Tata Steel jumped nearly 3 per cent as the company sealed a business tie-up with Thyssenkrupp.
On Saturday, the steelmaker and Thyssenkrupp AG signed definitive agreements to combine their European steel businesses in a 50:50 joint venture (JV) in a new company.
The scrip traded 2.87 per cent up at Rs 584.15 at around 9.23 am on Monday.
The BSE Sensex was down 100 points, or 0.27 per cent, at 35,326 at around the same time.
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 transaction is subject to merger control clearance in several jurisdictions, including the European Union (EU).
Until completion of the JV process, the two companies will operate as separate entities and competitors.
Once the JV is completed, Thyssenkrupp Steel Europe and Tata Steel Europe will be integrated as one company.
Global brokerage firm Jefferies maintained ‘Hold’ on Tata Steel with a target price of Rs 586.
