Jindal Steel Shares In Focus On Reports Of Phased Thyssenkrupp's Steel Unit Acquisition
The proposal under consideration involves Jindal acquiring an initial 60% stake in TKSE, with the remaining 40% to be purchased later.
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Shares of Jindal Steel will be in focus today on the back of reports that Germany's Thyssenkrupp could sell its steel division to the Indian steelmaker in several steps.
Shares of Jindal Steel ended flat in Tuesday's trading session at Rs 1,080.90 apiece after a volatile day. Now, media reports suggest that the two sides are attempting to strike a deal for the business.
Jindal Steel International has been conducting due diligence on Thyssenkrupp Steel Europe (TKSE) since October following an indicative bid for Europe’s second-largest steelmaker, according to Reuters. The potential deal is critical for Thyssenkrupp as the German conglomerate seeks to streamline operations and sharpen its focus.
The same report suggests that one proposal under consideration involves Jindal acquiring an initial 60% stake in TKSE, with the remaining 40% to be purchased later. This will either in two tranches of 20% or in a single transaction, depending on the restructuring progress.
A phased approach could help Thyssenkrupp manage roughly €2.5 billion ($2.9 billion) in pension liabilities linked to TKSE. The report notes that this is a key obstacle in previous sale attempts.
The sale would conclude years of efforts to divest TKSE, a business deeply rooted in Germany’s industrial legacy but burdened by high costs and stiff Asian competition. For Jindal Steel International, part of the Naveen Jindal Group, the acquisition would represent a significant European expansion following its 2024 purchase of Czech-based Vitkovice Steel.
Thyssenkrupp confirmed to Reuters that valuation, obligations, and future investments remain under review during due diligence. A Jindal delegation is expected to visit TKSE’s Duisburg plant in January for a technical assessment.
CEO Miguel Lopez recently described Jindal as an 'optimal fit' for TKSE, citing restructuring efforts that sparked the Indian firm’s interest. He added that Thyssenkrupp has a contingency plan should talks fail, though details were not provided.
