According to sources, the parties are working on a deal based on a phased sale model.
It is reported that Jindal Steel began its due diligence process in October after submitting an indicative offer for TKSE, one of Europe’s leading steel producers. The potential sale is seen as a critical step in Thyssenkrupp’s strategy to transition toward a leaner and more focused corporate structure.
Sources indicate that Jindal Steel would initially acquire a majority stake of around 60% in TKSE. The remaining 40% could be transferred either in two separate tranches of 20% each or in a single transaction, depending on progress achieved in the restructuring process.
One source noted that Thyssenkrupp is receptive to a phased sale plan due to pension liabilities of approximately €2.5 billion, which had previously complicated sale processes, adding that this approach could provide the company with greater flexibility.
While the due diligence process is ongoing and final terms have not yet been determined, Thyssenkrupp shares rose by as much as 4.9% following the sale reports, becoming the day’s top gainer in Frankfurt’s mid-cap index. One investor commented, “After years of an inconclusive process, the likelihood of a sale now appears to be taking concrete shape.”
Jindal Steel delegation to visit Germany in January
The potential sale of TKSE is viewed as the strongest development yet that could bring Thyssenkrupp’s long-running search for a buyer to an end. A key part of Germany’s industrial heritage, TKSE has been facing a challenging period, particularly due to intensifying competition from Asian rivals and high operating costs.
Jindal Steel International, the global steel arm of the Naveen Jindal Group, entered the European market in 2024 through the acquisition of Czech producer Vitkovice Steel. The acquisition of TKSE would represent the company’s largest move in the region to date.
In a statement, Thyssenkrupp said that all aspects, including valuation, liabilities and future investment requirements, would be addressed during the discussions, adding: “As the talks are still at an early stage, we are unable to comment in detail at this time.” Jindal Steel International did not issue a comment.
Following a postponed visit originally scheduled for December, the Jindal delegation is expected to travel to Germany in January to carry out technical inspections at TKSE’s Duisburg facilities. Another source noted that the phased sale model would mean Thyssenkrupp remains actively involved in the restructuring process.
Source: Reuters
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