FILE PHOTO: Waste metal is seen at Tata Steel's new robotic welding line at their Automotive Service Centre in Wednesfield, Britain, February 15, 2017. REUTERS/Darren Staples/File Photo

BERLIN (Reuters) - German Labour Minister Andrea Nahles said on Wednesday that a merger between Germany's Thyssenkrupp and India's Tata Steel should not happen at any cost and the headquarters needed to be in Germany if it did happen.

Thyssenkrupp and Tata Steel struck a preliminary deal on Wednesday to merge their European steel operations in a 50-50 joint venture to create the continent's No.2 steelmaker after ArcelorMittal.

"There must not be a merger at any price. The sites in Germany must be maintained and compulsory redundancies must be ruled out," Nahles said in an emailed statement, adding that the sites in Germany were "absolutely competitive".

"It's important that if they do merge the headquarters is in Germany," she added.

Nahles also said employee representatives needed to be involved in consultations on upcoming negotiations and existing commitments to workers needed to be kept.





(Reporting by Michelle Martin; Editing by Michael Nienaber)