Czech billionaire Daniel Kretinsky has agreed to sell his 20% stake in Thyssenkrupp’s steel division, ending plans to create a joint venture with the German company, Reuters reports.
According to a joint statement by the parties, this decision allows Thyssenkrupp to focus on negotiations with India’s Jindal Steel International, which submitted a preliminary bid to acquire the entire business in September.
The deal puts an end to lengthy negotiations that could have resulted in an alliance between German and Czech metallurgy and energy companies, but have not yielded any significant progress since Kretinsky acquired a stake in the company in 2024. His EP Group said it respects Thyssenkrupp’s desire to engage in dialogue with Jindal Steel International and will receive compensation for the cost of the stake.
Financial details were not disclosed, but sources estimate the deal to be worth around €140 million. The news caused a brief drop in Thyssenkrupp’s share price, but the stock quickly recovered, approaching a six-year high.
The joint plans of EP Group and Thyssenkrupp to create a 50/50 venture met with resistance. Powerful trade unions criticized Kretinsky for his unwillingness to engage in dialogue, which complicated the prospects for an agreement.
The European steel industry is currently in crisis. The growth of cheap Chinese imports, high energy costs, and delays in the transition to hydrogen technologies are putting pressure on companies. For Thyssenkrupp, the sale of its troubled division could be an opportunity to complete its long-standing efforts to reduce risks and focus on more stable areas of business.
In September, Thyssenkrupp announced that it had received a non-binding offer to acquire its TKSE steel division from India’s Jindal Steel International. The financial details have not been disclosed, but it is known that Jindal is ready to invest more than €2 billion in the development of electric arc furnaces and the completion of a green steel production project in Duisburg. In addition, the Indian company has announced its willingness to assume TKSE’s pension obligations of approximately €2.7 billion.
This move could give the Indian company a potential competitive advantage, for example, by producing in a region without CBAM.
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