The company continues negotiations with the Czech billionaire regarding the possible sale of part of the European steel division

The weakening global steel market is complicating negotiations between German industrial company Thyssenkrupp and Czech billionaire Daniel Kretinsky over the possible sale of part of its European steel division. This was stated by Miguel Lopez, CEO of the German conglomerate Thyssenkrupp, Nasdaq reports.

The European steel industry is facing declining demand in the domestic market, stagnant Chinese economy and the invasion of Asian competitors with cheap products in the local market. Meanwhile, negotiations with Kretinsky and his energy holding EPH over a possible joint venture that would give the Czech billionaire up to 50% of Thyssenkrupp’s steel business have been going on for months.

«Economic challenges in the steel industry do not make negotiations easier,» Miguel Lopez said.

According to him, the company continues constructive and open negotiations with EHP, while Thyssenkrupp is exploring partnership opportunities around the world to provide green and affordable energy for its steel rolling facilities and is also in discussions with strategic partners on this topic.

«For example, we see great potential in the Iberian Peninsula, the Middle East, and the southern United States,» Lopez added.

As GMK Center reported earlier, Kretinsky expressed interest in buying a stake in Thyssenkrupp’s steel division in June 2023. The official announcement of the negotiations was made in October, and it was expected that the deal could be completed by the end of 2023.

In early 2023, Thyssenkrupp resumed its efforts to spin off its steel division, a plan that had previously been frozen due to unsuccessful attempts to list, sell or find a merger partner for Europe’s second-largest steelmaker.