Germany-based Thyssenkrupp AG has confirmed that it is engaged in “intensive” negotiations with Jindal Steel International, a subsidiary of India’s Jindal Steel Limited, regarding the potential sale of its steelmaking business, according to a report by Reuters.
Thyssenkrupp CEO Miguel Lopez told Reuters that discussions with Jindal are “ongoing, very intensively,” signaling strong engagement between the two sides. Lopez said the company expects to determine the outcome “over the next few months.” He added that Thyssenkrupp’s current focus is on restructuring its steel operations and carefully evaluating Jindal’s proposal, which includes significant investment commitments toward green steel development in Germany.
Last month, Jindal Steel International submitted a non-binding bid for Thyssenkrupp Steel Europe as part of its strategy to strengthen its position on the continent, as previously reported by SteelOrbis. Jindal’s proposal includes completing the direct reduction iron (DRI) project in Duisburg and building additional electric arc furnace (EAF) capacity, with a financial commitment exceeding €2 billion. The acquisition, if completed, would give Jindal a foothold in advanced European steelmaking technologies and enable synergies with its existing production and export network in India.
Thyssenkrupp has so far faced difficulty with the sale of its steel division within the company’s restructuring agenda. Previous divestment efforts failed largely due to pension obligations and the complex cost structure of the steel business.