Thyssenkrupp considers phased sale of TKSE to Jindal Steel International

Thyssenkrupp is exploring a phased sale of its steel division TKSE to Jindal Steel International, with Jindal carrying out due diligence since October and a technical visit to Germany planned for January.

Thyssenkrupp is exploring a phased sale of its steel division, Thyssenkrupp Steel Europe (TKSE), to India's Jindal Steel International, according to people familiar with the talks. Jindal has been conducting due diligence on TKSE since October after making an indicative bid. One option under discussion would see Jindal take a 60% stake first, with the remaining 40% acquired later in two 20% tranches or in one step. A phased transaction would give Thyssenkrupp more flexibility to address about €2.5 billion in pension liabilities tied to TKSE. Key points: - Jindal Steel International has been doing due diligence on TKSE since October after an indicative bid was made. - The phased structure under discussion would likely start with a 60% stake for Jindal, with the remaining 40% to follow in two 20% tranches or a single later purchase. - Thyssenkrupp faces roughly €2.5 billion in pension liabilities connected to TKSE, a central issue in past sale attempts. - A Jindal delegation is scheduled to visit Germany in January for a technical review of TKSE's Duisburg plant, after a December trip was postponed. - Thyssenkrupp CEO Miguel Lopez has said Jindal is an optimal fit and the company has a plan B if talks fail. - Due diligence is ongoing, terms could change, and Thyssenkrupp said any specifics would be discussed during due diligence and contract talks. Summary: A phased sale would allow Thyssenkrupp to remain involved in TKSE's restructuring while addressing pension and restructuring challenges. The next formal steps are ongoing due diligence and a planned January technical visit by a Jindal delegation. The outcome and detailed terms remain undetermined at this time.