Thyssenkrupp in ‘intensive’ talks with Jindal over sale of steel unit

FRANKFURT: Thyssenkrupp is in intensive talks with Jindal Steel International over the Indian group’s interest in its steel business, the German conglomerate’s CEO said, calling it “good cooperation” but signalling discussions could take a while.

Jindal Steel International last month made an indicative bid for Thyssenkrupp Steel Europe (TKSE), Europe’s second-largest steelmaker, to strengthen its foothold on the continent, in what could result in a sale of the business that has long been sought by management.

“Talks are ongoing - very intensively,” CEO Miguel Lopez told Reuters at the Frankfurt stock exchange, where he was attending the stock market debut of the TKMS naval vessels unit, which was spun off from Thyssenkrupp.

“We’ll see what outcome we’ll have over the next few months,” he said, adding it was Thyssenkrupp’s goal to restructure steel and thoroughly assess the offer by Jindal, which brings with it investment commitments for a major green steel site.

The sale of the steel unit remains the most critical part of Lopez’s restructuring agenda for the storied German firm, as several efforts to divest the business have failed in recent years - mostly because of substantial pension liabilities tied to it.

As a result of the Jindal offer, Thyssenkrupp and Czech billionaire Daniel Kretinsky ended long-standing talks over a 50:50 steel joint venture.