Jindal Steel 's potential takeover of Thyssenkrupp's steel business is progressing, according to Thyssenkrupp's CEO Miguel Lopez. While the discussions are advancing well, Lopez indicated that finalizing a deal could take several months.

Key Points of the Takeover Discussions

• Status of Talks: Lopez described the discussions as "intensive and constructive."
• Timeline: Despite positive progress, the CEO indicated that completing the deal could take months.
• Jindal Steel's Offer: The Indian company has submitted a non-binding bid for Thyssenkrupp Steel Europe (TKSE).

Thyssenkrupp's Evaluation Process

Thyssenkrupp is carefully examining Jindal Steel's offer, focusing on three primary aspects:

1. Economic sustainability
2. Continuation of green transformation
3. Protection of employment at steel sites

TKMS Naval Vessels Unit Goes Public

Lopez made these comments while attending the stock market debut of TKMS, Thyssenkrupp's naval vessels unit, at the Frankfurt stock exchange.

Implications for Stakeholders

This potential deal between Thyssenkrupp and Jindal Steel could have significant implications for both companies and the broader steel industry. Stakeholders will be closely watching how the negotiations progress, particularly regarding the key focus areas Thyssenkrupp has outlined in its evaluation process.

As the talks continue, more details are expected to emerge about the potential structure of the deal and its impact on Thyssenkrupp's steel business. The company's emphasis on economic sustainability, green transformation, and employment protection suggests a careful approach to any potential agreement.

In a significant shift in the European steel industry landscape, Thyssenkrupp and Czech billionaire Daniel Kretinsky have mutually agreed to terminate their plans for a 50/50 joint venture involving Thyssenkrupp Steel Europe (TKSE). This development potentially clears the path for Jindal Steel 's takeover bid for Germany's largest steelmaker.

Joint Venture Dissolution

The EP Group, Kretinsky's investment vehicle, will return its 20 percent stake in TKSE to Thyssenkrupp and receive reimbursement for the purchase price. This move effectively dismantles the previously planned joint venture structure, signaling a shift in Thyssenkrupp's strategic direction for its steel business.

Jindal Steel's Takeover Bid

The dissolution of the joint venture removes a potential obstacle for Jindal Steel's ambitions. In September, Jindal Steel submitted a non-binding offer for TKSE, which Thyssenkrupp has committed to reviewing carefully. The German conglomerate emphasized that particular attention would be given to the implications for jobs in evaluating the offer.

Acknowledging the new direction, the EP Group stated that it respects Thyssenkrupp's preference to focus discussions with Jindal Steel International. This statement suggests a cordial end to the joint venture talks and a clear path forward for potential negotiations with Jindal Steel.

Thyssenkrupp's Steel Divestment Strategy

Thyssenkrupp's decision to explore divestment options for its steel unit comes as the division faces increasing pressure from cheaper Asian competition. The move aligns with the company's broader strategy to streamline its operations and improve profitability.

TKSE's Restructuring Plans

As part of its efforts to enhance competitiveness, TKSE has announced significant restructuring plans:

• Job Cuts: The company plans to reduce its workforce by 11,000 positions by 2030.
• Production Capacity: TKSE aims to decrease its annual production capacity from 11.50 million tons to 9.00 million tons.

These measures underscore the challenges facing the European steel industry and Thyssenkrupp's attempts to adapt to changing market conditions.

The unfolding situation at Thyssenkrupp Steel Europe represents a critical juncture for the European steel industry. As discussions with Jindal Steel progress, stakeholders will be closely watching the potential impact on jobs, production capacity, and the broader industrial landscape in Germany and Europe.