US-based investment firm Flacks Group has announced that it has it is prepared to bid for German steelmaker Thyssenkrupp’s steel subsidiary Thyssenkrupp Steel Europe if ongoing negotiations to sell the business fail.
Michael Flacks, CEO of Flacks Group, said, “Our main interest is now in Italy, but we are interested in major steel companies, and if the talks regarding an acquisition of Thyssenkrupp’s steel business fail, we are ready to bid for it.”
Thyssenkrupp has been in talks with Jindal Steel International since last autumn regarding a potential sale of its steel division, but negotiations have not yet produced a formal bid.
Possible consolidation in European steel
If a deal were to materialize, it would represent another significant 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 the talks with Jindal Steel International will likely determine whether Thyssenkrupp proceeds with that transaction or opens the process to alternative bidders such as Flacks Group.