India’s Jindal closes in on Thyssenkrupp Steel as EP Group checks out

Core Viewpoint - Thyssenkrupp has terminated its joint venture discussions with EP Group, focusing instead on Naveen Jindal's acquisition offer for Thyssenkrupp Steel Europe [1][2]. Group 1: Joint Venture Cancellation - Thyssenkrupp AG and EP Group mutually agreed to end discussions regarding a potential equal joint venture for Thyssenkrupp Steel Europe [1]. - EP Group will return its 20% stake in Thyssenkrupp Steel Europe and receive reimbursement for the purchase price paid [2]. Group 2: Jindal's Acquisition Bid - Naveen Jindal's firm, Jindal Steel International, has made an unsolicited bid for Thyssenkrupp Steel Europe, now facing no competition following the cancellation of the joint venture [3]. - The bid amount remains undisclosed, but Jindal Steel International has pledged €2 billion to support decarbonization efforts in Germany, including the completion of a direct reduced iron (DRI) plant [4]. Group 3: Company Sentiment and Future Plans - The mood at Thyssenkrupp is positive following the news of Jindal's bid, with executives and employees expressing excitement [5]. - A delegation led by Naveen Jindal is scheduled to visit Germany for further discussions regarding the acquisition and post-acquisition strategy [5]. Group 4: Potential Impact of the Acquisition - If successful, Jindal would establish a strong European presence, managing close to 25 million tonnes per annum (mtpa) of steel capacity, including 10 mtpa from Jindal Steel Ltd in India [6]. - This acquisition would position Jindal Steel as the third Indian steelmaker to develop a significant manufacturing base in Europe, following Tata Steel and ArcelorMittal [8]. Group 5: Leadership and Negotiation Team - The acquisition efforts are being led by Venkatesh Jindal, the 29-year-old heir apparent, alongside Naveen Jindal and other senior executives [7].