US investment firm Flacks Group has announced it is prepared to bid for the steel subsidiary of German steelmaker Thyssenkrupp Steel Europe if ongoing negotiations to sell the business fail.
Michael Flacks, chief executive of Flacks Group, said: “Our main interest is now in Italy, but we are interested in large steel companies and if negotiations to acquire the steel business Thyssenkrupp fails, we are ready to bid."
Thyssenkrupp has been in talks with Jindal Steel International since last fall about a potential sale of its steel division, but the talks have not yet resulted in a formal bid.
Possible consolidation in European steel
If the deal goes through, This will be another important step in the ongoing restructuring of the European steel industry, which continues to face pressure from high energy costs, global overcapacity and weak demand, SteelOrbis understands.
The outcome of negotiations with Jindal Steel International will likely determine whether Thyssenkrupp continues with the deal or opens the process to alternative bidders such as Flacks Group.
