The German industrial giant Thyssenkrupp is considering the possibility of gradually selling its steel business to the Indian company Jindal Steel International. This concerns Thyssenkrupp Steel Europe (TKSE), the second largest steel producer in Europe.
This is reported by Finway
Negotiations on the Deal and Possible Phases of the Sale
Since October 2025, Jindal Steel International has been conducting a comprehensive review of Thyssenkrupp Steel Europe following the submission of a preliminary acquisition proposal for the enterprise. According to sources, a scenario is being discussed in which, at the first stage, the Indian group would acquire a controlling stake of 60%, while the remaining 40% could be bought in the future — either in two tranches of 20% each or entirely, depending on the progress of the restructuring.
“A phased deal would give Thyssenkrupp more flexibility to address pension obligations of approximately €2.5 billion ($2.9 billion) related to TKSE, which has been a major obstacle during previous sale attempts,” noted one of the sources.
Impact of the Deal on Companies and the Market
The sale of the steel division is strategically important for Thyssenkrupp, which aims to enhance the efficiency of its operations and optimize its business structure. The company produces a wide range of products, from submarines to auto parts. If the deal goes through, Thyssenkrupp will be able to resolve complex issues regarding pension obligations that have complicated previous attempts to sell the steel division.
For Jindal Steel International — the international steel division of the Naveen Jindal group — this would be a significant step towards expanding its presence in the European market. It is worth noting that in 2024, the company already acquired the Czech Vitkovice Steel. A delegation from Jindal is scheduled to visit the TKSE plant in Duisburg in January for a technical assessment, as this visit was postponed from December.
Details regarding the gradual transfer of control and the impact of the deal on TKSE’s debt obligations have not yet been officially disclosed. The review and negotiations are ongoing, and the final terms may still change.
Thyssenkrupp emphasizes that all key aspects of the deal, including asset valuation, party obligations, and future investments, will be considered during the comprehensive review and in the course of further negotiations regarding the contract.