Thyssenkrupp sale: Jindal Steel makes bid for German steel unit, group weighs green steel push and rival interest

Jindal Steel International has made a non-binding offer to acquire Thyssenkrupp’s steel division, the German conglomerate said Tuesday, in a move that could reshape Europe’s traditional steel landscape. The bid, details of which were not disclosed, sent Thyssenkrupp shares soaring nearly 8% in Frankfurt trade, AFP reported.The once-iconic German industrial major has been trying to exit its struggling steel arm — Thyssenkrupp Steel Europe (TKSE) — which has been battling high domestic costs and Asian competition. The group said it would “carefully review” the proposal from Jindal and pay “particular attention” to the implications for jobs.Workers see ‘good news’Juergen Kerner, a workers’ representative on Thyssenkrupp’s board, described the offer from the “growth-oriented” Indian steelmaker as positive for employees. “Jindal Steel has its own access to raw materials and expertise in the green transformation,” he said, urging a quick dialogue to resolve workforce concerns.TKSE, which announced plans last year to cut 11,000 jobs by 2030 — about 40% of its workforce — has been under pressure to find a long-term buyer or partner. The Indian offer could trigger a contest with Czech billionaire Daniel Kretinsky, who acquired a stake in the steel unit through his holding firm EPCG and had been in talks for a potential joint venture.Green steel ambitionJindal, in its statement, said it was committed to green steel production, aligning with Thyssenkrupp’s shift towards low-emission operations. Narendra Misra, head of European operations at Jindal, said the aim was to “preserve and advance the 200-year-old heritage of Thyssenkrupp” while turning it into “the largest low-emission steel producer in Europe.”The German company has been building a new site in Duisburg to produce carbon-neutral steel, though CEO Miguel Lopez has warned of profitability challenges. Jindal pointed to its Oman project, due to start in 2027, as evidence of its commitment to large-scale green steel ventures.A spokesperson for EPCG declined to comment on the Indian bid, AFP reported. Thyssenkrupp has previously indicated talks with Kretinsky about a 50:50 joint venture were still ongoing.Offloading the steel business forms part of Thyssenkrupp’s wider plan to split itself into standalone businesses to improve profitability.