Thyssenkrupp steel division sale talks with Jindal stall
Thyssenkrupp deputy chairman Juergen Kerner says steel sale talks with Jindal are stalled. He warned that workers cannot afford to be left in limbo for months.
Negotiations regarding the sale of the steel division of thyssenkrupp AG to Jindal Steel International, a company based in India, have reportedly reached a standstill. Juergen Kerner, the deputy chairman of the supervisory board and deputy head of the IG Metall union, stated on Friday that the long-awaited transaction must not be allowed to stall for several more months. Kerner revealed that labor representatives had submitted a detailed questionnaire to Jindal, which has been performing due diligence on the unit, known as Thyssenkrupp Steel Europe (TKSE), since October. > We were promised answers, but these have subsequently been postponed several times. The lack of progress is creating a state of uncertainty for the workforce in Germany. Kerner noted that discussions between the parent company and the potential buyer are taking longer than expected, and he warned that employees cannot afford to remain in limbo. In response to the concerns, a spokesperson for the German conglomerate indicated that negotiations are ongoing. This follows remarks by CEO Miguel Lopez, who recently stated that the talks involve complex discussions regarding valuation and future investment commitments. Lopez emphasized that the steel division will be modernized and prepared for future operations regardless of the outcome of the deal with Jindal. Jindal Steel International maintains that it is committed to the process, asserting that its industrial strategy offers a clear vision for competitive, low-emission steel production. However, the delays have opened the door for other potential suitors. The Flacks Group, an investment firm from the United States that focuses on distressed assets, has signaled its interest in acquiring the steel unit should the current talks collapse. The resolution of the TKSE sale is a critical component of the CEO's broader strategy to transition the industrial group into a holding structure. Lopez suggested that recent European Union initiatives aimed at protecting the regional steel market have improved the company's negotiating position and bolstered investor interest in the asset.
