Thyssenkrupp has paused talks with India’s Jindal Steel International about a
possible sale of the German industrial group’s steel unit, it
said on Saturday, marking a setback for CEO Miguel Lopez’s
restructuring efforts.
Lopez has made major progress in recent years with turning
Thyssenkrupp into a holding company, most notably by separately
listing its hydrogen and warship divisions, but long-standing
plans to divest the volatile steel business have proved more
difficult to achieve.
While the companies did not provide a reason for why talks
had ended, Lopez said in the statement that prospects for the
steel business were “better than they have been in a long time”,
citing improved conditions across the continent.
Reuters reported in March that the discussions over a deal,
which started in September, could be called off due to
differences over pension liabilities, investments and energy
costs, citing four people familiar with the matter.
Jindal Steel International had made an indicative bid for
Thyssenkrupp Steel Europe (TKSE) last year, leading to months of
due diligence and negotiations on a potential purchase of what
is Europe’s second-biggest steelmaker.
“The original assumptions and prerequisites for a potential
sale of Thyssenkrupp Steel have significantly changed in recent
months,” Thyssenkrupp said in a statement, adding that the
decision to halt the talks was mutual.
SECTOR PRIMED FOR REBOUND
Europe’s steel sector has been boosted by EU safeguard measures
to better protect it against cheap Asian imports, essentially
throwing the industry a lifeline after years of plant closures
and job cuts.
As a result, the sector is set for a rebound and the first
quarter of 2026 could represent an inflection point, analysts
have said, pointing to higher steel prices on the continent.
Narendra Misra, director of European operations at Jindal,
said despite talks being paused, the groups “remain connected in
friendship and our shared goal remains to work on building
low-carbon steel production in Europe”.
Thyssenkrupp said it would for now continue with TKSE’s
restructuring, confirming a medium-term goal to make the
business independent and eventually retain a minority stake down
the line.
Juergen Kerner, deputy chief of Germany’s IG Metall labour
union as well as Thyssenkrupp’s supervisory board, on Saturday
called on management to start talks soon over an independent
set-up for TKSE.