German giant Thyssenkrupp may sell steel biz to Jindal

Germany’s Thyssenkrupp could sell its steel division to Jindal Steel International — a Naveen Jindal Group company — in several steps, four people familiar with the talks said, as the two sides try to strike a deal for the complex business. Jindal Steel has been conducting due diligence on Thyssenkrupp Steel Europe (TKSE) since October after making an indicative bid for Europe’s second-largest steelmaker. The deal is key for Thyssenkrupp as the submarines-to-car-parts group seeks to become leaner and more focused. One option under discussion would see Jindal take a majority stake in TKSE, likely 60%, in a first step, with the remaining 40% acquired later in two 20% tranches or in one go, depending on progress in restructuring, the people said. A phased transaction would give Thyssenkrupp more flexibility to address about 2.5 billion euros ($2.9 billion) in pension liabilities tied to TKSE — a major hurdle in previous sale attempts, one of the people said. A sale of TKSE would end years of efforts to find a buyer for an asset that, while central to Germany’s industrial heritage, has been volatile and costly to run amid tougher Asian competition. For Jindal Steel International, it would mark a major expansion into Europe after buying smaller Czech peer Vitkovice Steel in 2024. Thyssenkrupp said that all aspects of the transaction would be discussed during due diligence. This is a REUTERS story.