Industrial conglomerate ThyssenKrupp and Indian group Tata have agreed to merge their steel operations in Europe, aiming to take second place in the market behind ArcelorMittal, the two companies said in a statement Wednesday.

The two conglomerates, which will finalise the deal in 2018, expect annual synergies of between 400 and 600  million euros (480 and 720 million dollars) and are likely to get rid of 4,000 jobs in production and administration