ThyssenKrupp, Jindal Steel International to Deepen Due Diligence on TKSE Amid Intensified Acquisition Talks

Key Developments in TKSE Acquisition Process
Germany’s ThyssenKrupp is facilitating increased access to TKSE’s financial and operational data for Jindal Steel International, which submitted an indicative bid last month for Europe’s second-largest steelmaker. The expanded due diligence will include detailed reviews of balance sheets and on-ground assessments at TKSE facilities in Duisburg, underscoring the progressive nature of negotiations.

Important Points and Notable Updates:

Formal due diligence by Jindal Steel began in recent weeks alongside site visits and financial disclosures from ThyssenKrupp.

Jindal Steel’s deeper access starting next week aligns with plans for intensified talks and thorough commercial evaluation.

TKSE employs nearly 26,000 people and comprises approximately 28% of ThyssenKrupp’s workforce, complicating the deal due to pension liabilities estimated at around €2.7 billion.

Jindal Steel’s proposal includes a commitment to invest over €2 billion in green steel technologies and capacity expansion at Duisburg.

The acquisition would provide Jindal Steel a critical foothold in Europe, blending its existing resources with advanced steelmaking operations and supplying iron ore from its mines in Cameroon.

Previous prospective buyers, including Czech billionaire Daniel Kretinsky, failed to advance due to engagement and pension liability concerns.

Labour unions have shown tentative support for Jindal Steel’s engagement strategy, noting its understanding of the industry’s challenges.

CEO Miguel Lopez of ThyssenKrupp described the discussions as “intensive and constructive,” emphasizing a potential timeline spanning several months before deal closure.

Strategic Outlook
This due diligence deepening marks a significant milestone in the potential sale, reflecting both parties’ commitment to evaluating a sustainable and mutually beneficial transaction that supports green steel production in Europe while addressing financial and labor complexities.

Sources: Economic Times, Reuters, Eurometal, Business Standard