German steelmaker Thyssenkrupp is considering a phased sale of its steel subsidiary Thyssenkrupp Steel Europe (TKSE) to Jindal Steel International, according to a Reuters report citing four sources familiar with the discussions.
Under one option currently being examined, Jindal would acquire an initial majority stake of around 60 percent in TKSE. The remaining 40 percent could be transferred later, either in two separate 20 percent tranches or in a single transaction, depending on progress in restructuring efforts, the sources said.
Due diligence ongoing since October
Jindal Steel International has been conducting due diligence since October 2025, following the submission of a non-binding indicative offer for what is Europe’s second-largest steelmaker.
For Thyssenkrupp, a potential transaction would represent a key step in its broader strategy to streamline operations and sharpen its focus on core businesses, including defense and automotive components.
Jindal’s European expansion strategy
For Jindal Steel International, part of the Naveen Jindal Group, the acquisition would mark a significant expansion of its European footprint. The group entered the European market in 2024 with the acquisition of Vitkovice Steel.
A source added that a Jindal delegation is expected to visit Germany in January for a technical assessment of TKSE’s Duisburg site, after a planned visit in December was postponed.
Thyssenkrupp remains cautious
In a statement, Thyssenkrupp said that all elements of a potential transaction, including valuation, liabilities and future investment commitments, are being examined as part of the due diligence process.
Another source noted that a phased transaction would also allow Thyssenkrupp to remain involved in TKSE’s restructuring during the transition period.
Alternative options still on table
Thyssenkrupp CEO Miguel López said last month that Jindal Steel International represented a strong strategic match for TKSE. He added that Thyssenkrupp’s extensive restructuring plans, including job and capacity reductions, had attracted Jindal’s interest.
López also indicated that alternative options remain available should negotiations fail, without providing further details.
