Jindal Steel's deal with Thyssenkrupp faces delay

NEW DELHI: Jindal Steel International is seeking clarity from German authorities, with the proposed deal to acquire Thyssenkrupp Steel facing delays over pension-related issues, persons aware of the matter said. The talks remain active and the deal has not been abandoned, though certain legal and operational matters are yet to be resolved. Pension liabilities remain key issues under discussion and further assurances from German stakeholders may be required before the transaction can move forward.

"The deal is stuck, but it still has life...assurance is needed from the German establishment. They have to take a shot, may be it will take some more time to conclude, as the pension issue is stuck," a person familiar with the matter said. Thyssenkrupp confirmed that negotiations with Jindal Steel International and employee representatives are continuing as part of the due diligence process. "We are continuing talks with Jindal Steel International and employee representatives regarding a possible sale of Thyssenkrupp Steel. The non-binding, indicative purchase offer from Jindal Steel International is being addressed directly between the parties in the ongoing due diligence process," a Thyssenkrupp spokesperson told TOI.

Jindal Steel submitted an indicative offer last Sept that included completing a green steel production facility in Duisburg .


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