EP Group Exits ThyssenKrupp Steel Talks; Jindal Steel Emerges as New Buyer
EP Group has exited talks to acquire a majority stake in ThyssenKrupp's steel division, selling its 20 percent stake at the original purchase price. This move comes after a series of failed negotiations with other companies, including Tata Steel, Liberty Steel, and SSAB. Meanwhile, another potential buyer has emerged: Indian steel manufacturer Jindal Steel International.
ThyssenKrupp's share price has soared by nearly 300 percent in the past year, reaching 12.40 euros, its highest since 2019. This surge could be further boosted if Jindal Steel's takeover appears realistic. The Indian company has shown interest in acquiring ThyssenKrupp's steel division, with negotiations officially announced on a Tuesday.
However, potential acquirers face a significant hurdle: ThyssenKrupp's pension obligations, currently around 2.6 billion euros. EP Group's decision to walk away may indicate the challenges posed by these obligations.
EP Group's departure from ThyssenKrupp steel division talks leaves room for Jindal Steel to potentially acquire the division. If the takeover materializes, it could further boost ThyssenKrupp's share price. However, the substantial pension obligations remain a significant challenge for any potential acquirer.
