Indian steel producer Jindal Steel International has submitted an offer to acquire Thyssenkrupp’s European steel division, marking a major potential shift in the continent’s steel industry. The development was confirmed on Tuesday after Thyssenkrupp AG’s CEO, Miguel López, informed the company’s Supervisory Board about the proposal.
Germany’s powerful metalworkers’ union, IG Metall, welcomed the move, calling it “fundamentally good news” for employees. Jürgen Kerner, Vice Chairman of IG Metall and Deputy Chairman of Thyssenkrupp AG’s Supervisory Board, stated that the entry of a growth-oriented steelmaker like Jindal Steel could secure the future of Thyssenkrupp’s workforce.
“The fact that a growth-oriented steel company like Jindal Steel International wants to become a strategic investor in Thyssenkrupp Steel is fundamentally good news for our employees. Jindal Steel has its own access to raw materials and expertise in the green transformation. Now it is important to quickly enter into substantive discussions to gain clarity on the most important outstanding issues as quickly as possible,” Kerner said, as per IGMetall.com.
He further added that employee representatives were prepared to participate constructively in the discussions to safeguard workers’ interests.
Thyssenkrupp’s steel division has long been struggling with profitability challenges, with rising energy costs and increased competition weighing heavily on its balance sheet. For Jindal Steel, the acquisition could provide a strategic foothold in Europe and strengthen its position in the green steel transformation by combining its raw material access with Thyssenkrupp’s established market presence.
Negotiations are expected to continue in the coming weeks as both sides work to address pending issues and regulatory considerations.
