thyssenkrupp AG and Jindal Steel International have agreed on May 2 to pause discussions regarding the acquisition of a stake in thyssenkrupp Steel Europe. The companies said that the original assumptions for a potential sale have changed significantly in recent months, prompting the decision.
The topic is important as it concerns the future structure of one of Europe’s major steel producers, affecting industry stability and jobs. Both companies cited changes in regulatory conditions and internal progress at thyssenkrupp as reasons for pausing negotiations.
According to thyssenkrupp, there has been significant progress in realigning its steel segment, including a collective restructuring agreement with IG Metall and an agreement on the southern Duisburg site. The company also noted that recent changes in European regulations have made conditions more favorable for steel production. These include measures such as tighter import quotas, higher protective tariffs when quotas are exceeded, the introduction of a Carbon Border Adjustment Mechanism (CBAM), and an EU Steel Action Plan aimed at supporting climate-friendly steel production.
Miguel López, CEO of thyssenkrupp AG, said: “We have always said: Steel is the future. A sustainable business is a valuable business. Now that we have reached an agreement in principle within our own company, with labor unions, and with policymakers in Germany and Europe, the conditions for the profitable continuation of thyssenkrupp Steel is better than they have been in a long time. Jindal has been a constructive and committed partner throughout the discussions. However, we have jointly agreed to pause negotiations for now.”
Narendra Misra, Director of European Operations at Jindal, said: “We thank thyssenkrupp for working constructively through the negotiations. Even though we have decided to pause the deal for the time being we remain connected in friendship and our shared goal remains to work on building low-carbon steel production in Europe.“
thyssenkrupp confirmed it will continue restructuring its steel segment independently with aims to ensure success and profitability while maintaining its objective to establish thyssenkrupp Steel as an autonomous entity. Recent agreements—including one reached with Salzgitter regarding HKM—have provided new prospects for key sites like southern Duisburg.
The company’s ACES 2030 strategy includes plans to spin off segments or open them up to third-party investments while transforming into a financial holding company. López concluded: “The more successfully thyssenkrupp Steel Europe implements the realignment that has been set in motion, the more attractive this business will become for the capital market and investors. We expect German and European policymakers to reliably deliver on their specific commitments to ensure resilience.”