Jindal Steel Eyes Strategic Acquisition of Thyssenkrupp's Steel Division

Jindal Steel International is in discussions to acquire Thyssenkrupp's steel division, TKSE, through a phased approach. This deal aims to streamline Thyssenkrupp while facilitating Jindal Steel's expansion in Europe. The transaction could address pension liabilities and involves ongoing due diligence.

In a significant move towards European expansion, India's Jindal Steel International is in negotiations to acquire Thyssenkrupp's struggling steel division, TKSE. Sources indicate that this acquisition could occur in stages, potentially allowing Jindal to initially take a 60% stake before acquiring the remaining shares.

The proposed phased sale strategy is designed to offer Thyssenkrupp greater flexibility in managing its substantial pension liabilities associated with TKSE, estimated at around 2.5 billion euros. This financial burden has previously complicated efforts to find a buyer for the steel division.

The shares of Thyssenkrupp notably increased by almost 5% following reports of this development, providing a boost amid years of searching for a purchaser. Meanwhile, Jindal Steel is expected to conduct a technical review of TKSE's Duisburg plant, emphasizing the deal's intricate nature and the ongoing due diligence.

(With inputs from agencies.)