India Jindal Steel plans to acquire ThyssenKrupp Steel Division!

Germany's ThyssenKrupp said on Tuesday that the company has received a non-binding offer from a division of Indian conglomerate Naveen Jindal Group to its steel division, the latest twist in the group's disposal over the years.

The news of its indicative acquisition of ThyssenKrupp Steel Europe (TKSE), the largest steelmaker in Germany, saw sales of 10.7 billion euros ($12.6 billion) in the last fiscal year, led to a 5.3% increase in the German conglomerate's share price at 1334 GMT.

ThyssenKrupp said it would look closely at the proposal, “especially in terms of economic sustainability, the sustainability of green transformation and employment of steel plants.”

The company did not provide any financial details about the acquisition, as the German industrial group is seeking to partially divest most of its business to become streamlined and focused.

The sale to Jindal Steel International would be a success for ThyssenKrupp. The submarine auto parts group has tried to sell TKSE in recent years, but failed, and billions of euros in pension liabilities remain a key issue.

In another statement, Jindal Steel International said its offer would ensure Germany's steel production, including TKSE's construction of a green steel production base in Duisburg and its commitment to invest more than 2 billion euros to establish additional arc furnace capacity.

"Our goal is to protect and develop ThyssenKrupp's 200-year industrial heritage and help transform it into Europe's largest integrated low-emission steel manufacturer," said Narendra Misra, Director of Operations at Jindal.

ThyssenKrupp sold 20% of TKSE to Czech billionaire Daniel Kretinsky last year with the goal of eventually selling another 30% of the shares and eventually establishing a 50-50 joint venture.

The powerful union, IG Metall, criticized the move, saying Kretinsky did not provide information about his strategic plan as a co-stakeholder.

Kretinsky's EPCG department declined to comment.

Juergen Kerner, deputy chairman of the Supervisory Board of ThyssenKrupp and senior member of IG Metall, said the news about the acquisition offer is good and more in-depth discussions should be started as soon as possible.

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