Germany's Thyssenkrupp AG has confirmed it is in "intensive" discussions with Jindal Steel International, a subsidiary of India's Jindal Steel limited, regarding the potential sale of its steel business, according to a Reuters report.
CEO Thyssenkrupp Miguel Lopez told Reuters that talks with Jindal are “ongoing, very intense,” indicating strong engagement between the two sides. Lopez said the company expects to determine the outcome "within the next few months." He added that Thyssenkrupp is now focusing on restructuring its steel operations and carefully evaluating Jindal's offer, which includes a significant investment commitment to develop green steel in Germany.
Last month, Jindal Steel International submitted a non-binding bid for the acquisition Thyssenkrupp Steel Europe is part of its strategy to strengthen its position on the continent, as SteelOrbis previously reported. Jindal's proposal includes the completion of the direct reduced iron (DRI) project in Duisburg and the construction of additional electric arc furnace (EAF) capacity, with a financial commitment in excess of €2 billion. The acquisition, if completed, will give Jindal a foothold in advanced European steel technology and provide synergies with its existing production and export network in India.
Thyssenkrupp has so far faced difficulties in selling its steel division as part of the company's restructuring programme. Previous attempts to sell assets failed largely due to pension obligations and the complex cost structure of the steel business
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