International investment firm Cevian Capital, which holds an 18 percent stake in German steel company ThyssenKrupp which makes it its second-largest shareholder, has identified Swedish steelmaker SSAB as the financially strongest partner for a potential partnership with ThyssenKrupp, as reported by Reuters.
The possible partners also include Salzgitter and Tata Steel, but SSAB is the healthiest in terms of its balance sheet, according to a document that Cevian will present to ThyssenKrupp, the sources said.
The same sources added that Thyssenkrupp needs to keep an open mind and not commit to any partner too early because that could weaken its negotiating position.
In May this year, ThyssenKrupp announced its plans to transform itself into a "group of companies with a lean management model and a clearly structured portfolio" and said it was "paving the way to make the steel business sustainably viable in what is an extremely challenging competitive environment".