The offer is backed by a €2 billion ($2.14 billion) green-steel investment, and evokes earlier waves of India-led consolidation in Europe’s steel sector, according to market sources.
Parent conglomerate Thyssenkrupp AG confirmed that it had received a non-binding, indicative offer from Jindal Steel International for the purchase of its steelmaking division. Thyssenkrupp AG acknowledged the offer and Jindal published an announcement on Tuesday September 16.
“The executive board of Thyssenkrupp AG will carefully review this offer, paying particular attention to its economic viability, the continuation of the green transformation, and employment at our steel locations,” the company said.
TKSE produces around 11 million tonnes per year of crude steel, employs about 27,000 people, and operates one of Germany’s largest integrated steel mills in Duisburg.
Restructuring context
TKSE is currently working to downsize production capacity and staff numbers after reaching an agreement with major German metalworkers’ trade union IG Metall in July. It planned to reduce output to 8.7-9.0 million tpy by 2030, from about 11 million py.
In July 2024, Thyssenkrupp sold a 20% stake in TKSE to EP Corporate Group (EPCG), the holding of Czech billionaire Daniel Křetínský, as part of efforts to reshape its steel division. EPCG and TKSE have since been in talks to establish a 50:50 joint venture, although IG Metall criticized the arrangement, citing a lack of clarity over the new shareholder’s long-term strategy.
Meanwhile, Jindal has not disclosed specific financial details of its bid but pledged more than €2 billion to complete the Duisburg direct-reduced iron (DRI) plant and to install new electric-arc furnace (EAF) capacity.
According to one industry source, Jindal’s interest in acquiring a major European steel asset is reminiscent of a strategic model laid down by Lakshmi Mittal – notably his acquisitions in Germany in the late 1990s, followed by the 2006 formation of ArcelorMittal – which was viewed as a blueprint for Indian firms seeking scale and consolidation in Europe.
Tata Steel’s takeover of Corus in 2007 was another example of Indian expansion into Europe. This was a deal that later ran into serious headwinds, including high restructuring costs, pressure from cheaper steel imports and a global economic downturn.
Market reaction
Market sources said that the Jindal offer was strategically attractive because producing within the EU would shield a hypothetical European Jindal steel arm from safeguard duties and levies under the EU’s Carbon Border Adjustment Mechanism (CBAM), while also providing access to potential subsidies to offset green steel costs.
But industry sources also noted challenges to securing a deal, pointing to the need for trade union support, TKSE’s pension obligations (worth several billion euros) and questions over whether synergies with Jindal’s operations in Oman could affect Duisburg’s future capacities for liquid and semi-finished steel.
Contrast with peers
Jindal’s commitment to proceeding with Duisburg’s DRI-EAF plans, as part of its TKSE bid, was in stark contrast to leading European steelmaker ArcelorMittal’s halting of similar green transition projects in Bremen and Eisenhüttenstadt in June, when it cited high energy costs, policy uncertainty and unfavorable market conditions.
Jindal and IG Metall were contacted for comment on these matters, but neither had responded by the time of publication.
