Our Bureau
Mumbai
Germany’s Thyssenkrupp AG is holding confidential negotiations with Jindal Steel International and employee representatives over a potential sale of its steel business, Thyssenkrupp Steel Europe (TKSE), Europe’s second-largest steelmaker. A company spokesperson confirmed the discussions, noting that key issues like valuation, obligations, and future investments in Jindal’s non-binding indicative offer will be resolved through ongoing due diligence and contract talks. This development marks a pivotal step in Thyssenkrupp’s long-standing efforts to offload the unit amid high costs and Asian competition.
Under one proposal, Jindal could acquire an initial 60% stake in TKSE, with the remaining 40% bought later in either two 20% tranches or a single deal, depending on restructuring progress. This phased structure aims to address Thyssenkrupp’s €2.5 billion ($2.9 billion) pension liabilities, a major hurdle in past sale attempts. Jindal has been conducting due diligence since October, following its initial bid, and plans a January visit by a delegation to TKSE’s Duisburg plant for technical review.
Thyssenkrupp CEO Miguel Lopez hailed Jindal as an “optimal fit,” crediting recent restructuring that drew the Indian firm’s interest; the company has a backup plan if talks collapse. For Jindal, part of the Naveen Jindal Group, the deal builds on its 2024 acquisition of Czech-based Vitkovice Steel, signaling bold European expansion. TKSE, steeped in Germany’s industrial heritage, has struggled with elevated expenses despite green transformation pushes.
