US EditionThyssenkrupp, Jindal Call Off Steel Sale Talks After Months of ...
The companies cited shifting sale terms, financing gaps and uncertainty over German state-aid approvals for decarbonization.
- On Saturday, Thyssenkrupp paused negotiations with Jindal Steel International regarding the sale of its steel unit, TKSE, stating that the "original assumptions and prerequisites for a potential sale of Thyssenkrupp Steel have significantly changed in recent months."
- Differences regarding pension liabilities, energy costs, and investment requirements stalled the deal; Reuters reported in March that discussions could be called off due to these factors.
- CEO Miguel Lopez noted prospects for the business are "better than they have been in a long time," though Thyssenkrupp might have needed to commit at least $2.3 billion to ensure the unit's success.
- Thyssenkrupp plans to continue restructuring TKSE toward eventual independence, while Narendra Misra, director of European operations at Jindal, said the groups "remain connected in friendship and our shared goal remains to work on building low-carbon steel production in Europe."
- Juergen Kerner, deputy chief of Germany's labour union and Thyssenkrupp supervisory board member, called on management Saturday to begin discussions regarding an independent set-up for TKSE.
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18 Articles
Also the second attempt to sell the steel failed. Jindal is not a pity. But now Thyssenkrupp head Lopez has to show if he really has a plan B in his pocket. The steel has done its homework.
Since September, discussions have been going on about the acquisition of the Thyssenkrupp steel division by a company from India. But now the German group is halting its sales plans. The repositioning of the segment is to be driven forward on its own initiative - at least for the time being.
Since September negotiations have been going on with the Indian family company Jindal Steel. Thyssenkrupp has now announced that it will hold on to the steel business – at least until further notice.
Sueddeutsche Zeitung
Most recently, there was little progress in the takeover talks with the Indian company Jindal. And in the meantime, the framework conditions for steel have improved.
Changed conditions put pressure on the partnership with Jindal Steel and Power. The division is to become investor fit – IG Metall demands a clear cut.
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