German industrial conglomerate Thyssenkrupp is exploring a multi-phase divestiture of its steel manufacturing subsidiary to Indian steel giant Jindal Steel International, according to sources familiar with negotiation details. The potential transaction, currently under advanced discussion, would represent a significant strategic shift for both corporations within the global steel industry landscape.
Jindal Steel International, the global steel division of the Naveen Jindal Group, initiated formal due diligence procedures in October following preliminary acquisition proposals for Thyssenkrupp Steel Europe (TKSE), currently ranked as Europe’s second-largest steel production entity. This development follows Jindal’s previous European market expansion through its 2024 acquisition of Czech steel producer Vitkovice Steel.
The contemplated acquisition framework involves an initial transfer of majority ownership, potentially comprising 60% of TKSE equity, with subsequent phased acquisitions of the remaining stake. This incremental approach would enable Thyssenkrupp to systematically address approximately €2.5 billion in pension liabilities associated with the steel unit, historically identified as a substantial obstacle in previous divestiture attempts.
Market response to the potential transaction manifested immediately through Thyssenkrupp’s equity performance, with shares surging 4.9% to lead Frankfurt’s midcap index following reports of the progressing negotiations. Financial analysts noted this development suggests concrete progress after years of unsuccessful attempts to identify suitable acquisition partners for the industrial asset.
Thyssenkrupp’s corporate leadership has publicly characterized Jindal Steel as an optimal strategic partner, attributing renewed acquisition interest to comprehensive restructuring initiatives implemented at TKSE facilities. The conglomerate maintains alternative strategic options should current negotiations prove unsuccessful, though specific details regarding contingency plans remain undisclosed.
A Jindal Steel technical delegation is scheduled for January site evaluations at TKSE’s primary Duisburg manufacturing complex, following rescheduling from originally planned December visits. Both corporations have declined to elaborate on specific negotiation terms, emphasizing the preliminary nature of current discussions and ongoing due diligence examinations.