Thyssenkrupp receives non-binding bid from Jindal Steel for TKSE unit

Thyssenkrupp said it would closely examine the offer "particularly with regard to economic sustainability, the continuation of the green transformation and employment at our steel sites"

German industrial engineering and steel production company Thyssenkrupp said it has received a non-binding bid for its steel manufacturing unit from Jindal Steel, without disclosing further details, Reuters reported on Tuesday.

 

A non-binding bid shows the filer’s interest in purchasing something and does not create a legal obligation between buyer and seller.

 

Thyssenkrupp said it would closely examine the offer for Thyssenkrupp Steel Europe (TKSE) “particularly with regard to economic sustainability, the continuation of the green transformation and employment at our steel sites”.

 

Thyssenkrupp’s deputy supervisory board chairman and senior IG Metall member Juergen Kerner told Reuters that the offer from Jindal Steel was good news. 

 

“It is now important to enter into substantive discussions quickly in order to gain clarity on the most important open questions as soon as possible,” he said.

 

Shares in Thyssenkrupp turned positive after the news and traded 2.1 per cent higher, Reuters reported.

 

Thyssenkrupp last year sold a 20 per cent stake in TKSE to Czech billionaire Daniel Kretinsky, with the aim of eventually selling a further 30 per cent stake to create a 50:50 joint venture.

 

Reuters also reported that powerful labour union IG Metall had criticised the move, saying Kretinsky had not provided information about his strategic plans as a co-shareholder.

 

Earlier, TKSE workers supported a restructuring plan for the revival of the company. The plan included job cuts, changes in working hours and adjustments to bonus payments, among other provisions.