Jindal Steel International to enter talks with thyssenkrupp AG to acquire European steel business, files non-binding offer

Jindal Steel is planning to buy thyssenkrupp's European steel business

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Naveen Jindal-owned Jindal Steel has announced that its overseas subsidiary, Jindal Steel International, is entering talks with the German conglomerate thyssenkrupp AG to potentially acquire the latter's European steel business, thyssenkrupp Steel Europe. The firm has submitted a non-binding bid for the company, and has also committed to support its decarbonisation plan.

In a statement, Jindal Steel International said that the support will be in the form of carrying on thyssenkrupp Steel Europe's direct reduced iron (DRI) project in Germany's Duisburg, and also constructing an electric arc furnace.

"Jindal has presented a forward-looking concept for thyssenkrupp Steel that could help make decarbonisation more affordable. The plan would secure steel production in Germany and create new business opportunities. Among other things, the proposal includes completing the DRI project in Duisburg and establishing additional electric arc furnace capacity with a financial commitment of more than €2 billion," the statement said.

"We believe in the future of green steel production in Germany and Europe. Our goal is to preserve and grow thyssenkrupp’s 200-year industrial legacy and help transform it into Europe’s largest integrated low emission steelmaker," said Narendra Misra, director of European operations of Jindal.

As part of the proposed acquisition, Jindal Steel International has proposed that the group's hydrogen-ready DRI plant in Oman, which is slated to be start operations by 2027, will provide supply security to thyssenkrupp Steel's capacity, and also accelerate the shift towards low-carbon steelmaking.

The firm also added that its iron ore mines in Cameroon will supply to thyssenkrupp Steel Europe's under-construction DRI facility in Duisburg, besides Jindal's Oman DRI plant, in order for an integrated "mine-to-metal" approach for thyssenkrupp Steel's operations.