Jindal Steel Submits Offer To Acquire Thyssenkrupp’s Steel Division

Jindal pledges over €2 billion to expand low-carbon steel production

Jindal Steel shares opened marginally in the red in early trade on Wednesday, after the company reportedly bid for the struggling steel unit of German conglomerate Thyssenkrupp.

Non-binding Offer

In a surprising move, Indian steel major Jindal Steel has reportedly submitted a non-binding offer to acquire Thyssenkrupp Steel Europe (TKSE). Although financial terms have not been disclosed, a significant aspect of the bid is Jindal’s pledge of over €2 billion in investment to expand low-carbon steel production in Germany.

This includes finishing TKSE’s under-construction direct reduced iron (DRI) plant in Duisburg and installing additional electric arc furnace capacity to lower emissions. Jindal Steel is also reportedly willing to assume TKSE’s pension liabilities.

The bid was received positively by investors. Thyssenkrupp’s stock jumped nearly 9% in Tuesday’s trade to its highest in over four years.

Labour reactions have been cautious but not dismissive. The powerful German labour union Thyssenkrupp has emphasised the importance of transparency and protection of workers, given past concerns over ownership stakes, strategic plans, and pension obligations, especially in light of the prior deal involving Czech billionaire Daniel Kretinsky, who currently holds a 20 % stake in TKSE.

Thyssenkrupp’s steel division, Steel Europe, generated $10.5 billion in revenue in FY25, contributing 27.5% of the group’s total $38 billion revenue. The business has been under strategic review for years amid sluggish demand, mounting costs, and significant capital requirements for its decarbonisation plans.

Jindal Steel shares have gained 12.9% so far this year.

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