Thyssenkrupp's Steel Division Finds Potential Buyer in Jindal Steel After Kretinsky Exit
Billionaire Daniel Kretinsky has sold his 20% stake in Thyssenkrupp's steel division, ending plans for a German-Czech steel alliance. The move comes after resistance from unions, particularly IG Metall, led to the collapse of the alliance. Meanwhile, Indian company Jindal Steel International has emerged as a potential savior for the struggling division.
Thyssenkrupp's steel division, TKSE, has been a burden for the company, leading them to seek separation or strong partners. Kretinsky's exit has boosted Thyssenkrupp's stock, with shares climbing up to 3% and reaching their highest level in almost six years.
Jindal Steel International has submitted a non-binding offer for the entire steel division. However, negotiations face challenges, with unions demanding early involvement and detailed insights into the financing of the offer. The European steel industry, including TKSE, grapples with issues like cheap imports, rising energy costs, and slow progress in green transformation.
Thyssenkrupp's steel division now looks to Jindal Steel International as a potential buyer. Despite challenges in negotiations, the deal could accelerate, providing relief for Thyssenkrupp and potentially bringing new strategies to tackle the European steel industry's challenges.
