Thyssenkrupp's Strategic Sale: Jindal Steel Eyes Major European Expansion

Thyssenkrupp is in advanced talks to sell its steel division to India's Jindal Steel International. The deal, structured in phases, aims to streamline Thyssenkrupp's operations and address its pension liabilities. A phased acquisition would enable Thyssenkrupp to remain involved during restructuring and manage debt obligations efficiently.

Germany's Thyssenkrupp is negotiating a strategic sale of its steel division to India's Jindal Steel International, according to sources. The deal, unfolding in phases, offers Thyssenkrupp a chance to streamline its business operations and address significant pension liabilities tied to its steel sector.

Jindal Steel has been pursuing due diligence since October, eyeing a phased acquisition that could see them first securing a majority 60% stake in Thyssenkrupp Steel Europe (TKSE), with an option to fully acquire the division later. This approach would allow Thyssenkrupp to address financial liabilities flexibly.

The transaction marks Jindal Steel's significant expansion into Europe, building on its earlier acquisition of Czech peer Vitkovice Steel. Negotiations continue amidst Thyssenkrupp's active restructuring efforts, with executives emphasizing the strategic compatibility of Jindal Steel in taking forward TKSE's operations.

(With inputs from agencies.)