Thyssenkrupp stocks see a decline in value.
In a significant development, Jindal Steel, India's largest steel producer, has submitted an unsolicited bid to acquire Thyssenkrupp's entire steel division. This potential merger has sent waves through the industry, with Thyssenkrupp's MDAX-listed shares soaring on Tuesday, only to take a two-percent dip the following day.
Jürgen Kerner, deputy chairman of IG Metall and deputy chairman of Thyssenkrupp AG's supervisory board, views Jindal as the 'perfect complement' for Thyssenkrupp's German steel operations. Jindal Steel, being active in many markets but with limited activities in Europe so far, plans to invest in and modernize Thyssenkrupp's steel divisions in Germany. This move is aimed at strengthening production capabilities and securing long-term competitiveness.
Jindal Steel also plans to supply high-quality iron ore from its own mines in Cameroon to the Duisburg DRI plant and its own DRI plant in Oman. The planned DRI plant in Duisburg will produce greener steel, contributing to Thyssenkrupp's green transformation efforts.
Thyssenkrupp, on its part, plans to 'intensively review' Jindal Steel's offer, focusing on economic viability, green transformation, and job retention at the steel sites. The due diligence process for Jindal Steel's bid on Thyssenkrupp's steel division will begin shortly.
The latest Thyssenkrupp figures suggest urgent action may be needed for shareholders. A new analysis of Thyssenkrupp's stock from September 17th is available, providing guidance for shareholders on whether to buy or sell. The current free analysis provides information on whether it is worth investing in Thyssenkrupp or if shareholders should sell. For more detailed information, you can find the buy or sell recommendation here...
Representatives of the Indian owning family will travel to Germany to hold talks with Thyssenkrupp and labor representatives. The Jindal Plan for Thyssenkrupp's German steel operations includes completing the Direct Reduction Iron (DRI) plant in Duisburg and investing over two billion euros in new electric arc furnace capacity.
This potential merger could mark a significant shift in the European steel industry. As developments unfold, shareholders and industry observers will be closely watching this space.
