Tel :
Tel :
According to Reuters, multiple sources familiar with the matter revealed that German industrial group Thyssenkrupp is considering a phased sale of its steel subsidiary, Thyssenkrupp Steel Europe (TKSE), to India's Jindal Steel International to facilitate this complex transaction.
Jindal Steel has been conducting due diligence on TKSE since submitting an indicative offer last October. B50AH600 Non oriented electrical steel, This transaction is crucial for Thyssenkrupp as the company attempts to streamline its operations and strategically focus on core sectors such as submarines and automotive parts by divesting its steel business.
One proposed scenario under discussion involves Jindal Steel acquiring a controlling stake in TKSE in the first phase, potentially 60%. The remaining 40% would then be acquired in two 20% increments, depending on the progress of the restructuring, or in a single acquisition.
Sources familiar with the matter say that a phased transaction would provide ThyssenKrupp with greater flexibility in handling approximately €2.5 billion in pension liabilities related to TKSE, a burden that was one of the main obstacles encountered in previous attempts to sell. B50AH600 Non oriented electrical steel, The specific structure of the phased acquisition and its impact on debt arrangements have not yet been disclosed. Due diligence is still ongoing, and the terms of the transaction are subject to change.
Following this, ThyssenKrupp's shares rose as much as 4.9%, leading the gains in the Frankfurt MidCap Index (MDAX). One trader stated that the sale of TKSE, after years of searching for a buyer, "is finally becoming more concrete."
If the deal goes through, it will end ThyssenKrupp's years-long search for a buyer for this asset, a symbol of German industry but characterized by high volatility and operating costs amidst increasing competition in Asia.
For Jindal Steel International, this would be another major expansion in the European market following its 2024 acquisition of Czech steel company Vitkovice Steel.
ThyssenKrupp stated that all aspects of the transaction, including valuation, related obligations, and future investments, will be discussed during due diligence and contract negotiations, and emphasized that it would not comment on any interim information at this time. B50AH600 Non oriented electrical steel, Jindal Steel has not yet commented.
Other reports indicate that a delegation from Jindal Steel plans to travel to Germany in January to conduct a technical assessment of TKSE's Duisburg steel plant. The phased acquisition will also allow ThyssenKrupp to remain involved in TKSE's restructuring process.
ThyssenKrupp CEO Miguel Lopez previously stated that Jindal Steel is an "ideal partner" for TKSE, noting that the restructuring plan involving significant layoffs and capacity reductions was a key factor attracting Indian interest. He also stated that the company has "alternative options" should negotiations with Jindal fail.
