Thyssenkrupp in Intense Talks with Jindal Steel Over Strategic Steel Division Sale

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Thyssenkrupp CEO confirms “very intense” negotiations with India’s Jindal Steel International over a non-binding offer for its steel division. The next few months will be critical in determining the outcome of this potential deal, which could reshape Europe’s steel landscape and align with green steel ambitions on both sides.

Thyssenkrupp Engages in High-Stakes Negotiations with Jindal Steel International

German industrial conglomerate Thyssenkrupp has entered a crucial phase of negotiations with India’s Jindal Steel International, following a non-binding offer for its struggling steel division. CEO Miguel López described the discussions as “very intense,” emphasizing that the coming months will reveal whether meaningful progress can be achieved toward a deal.

The steel division, once a symbol of German manufacturing prowess, has faced mounting challenges including high domestic production costs and fierce competition from Asian producers. Thyssenkrupp has long sought to divest this unit, which generated €10.7 billion in sales last year, as part of a broader restructuring strategy.
Jindal Steel’s approach is seen as a strategic move to expand its global footprint and potentially transform Thyssenkrupp into a low-emission steel producer, aligning with both companies’ green steel ambitions.

Notable Updates and Strategic Implications

- Nature of the Offer
Jindal Steel International has submitted a non-binding indicative offer, signaling serious interest but leaving room for negotiation and due diligence.

- CEO Commentary
Thyssenkrupp CEO Miguel López stated that discussions are “very intense,” and the next few months will be decisive in determining the feasibility of the deal.

- Restructuring Context
Thyssenkrupp has been actively seeking to offload its steel division, which has become a financial drag amid broader industrial challenges.

- Green Steel Vision
Jindal’s proposal reportedly includes plans to pivot the division toward low-emission steel production, aligning with Thyssenkrupp’s sustainability goals.

- Market Reaction
News of the offer sent Thyssenkrupp shares soaring by nearly 8%, closing up 4.4%—their highest in over four years.

- European Steel Landscape
If successful, the deal could reshape the competitive dynamics of Europe’s steel industry, introducing a major Indian player into the mix.

As Thyssenkrupp weighs its options and Jindal Steel deepens its international ambitions, this potential transaction could mark a turning point for both companies—and for the future of sustainable steel production in Europe.

Sources: France24, Times of India, Business Today.