Thyssenkrupp, Jindal call off steel sale talks after months of negotiations

FRANKFURT: 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, markinga 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.