Germany’s Thyssenkrupp AG could sell its steel division to India’s Jindal Steel International in a phased manner, four people familiar with the talks said, as the two sides try to strike a deal for the complex business.
Jindal Steel has been conducting due diligence on Thyssenkrupp Steel Europe since October after making an indicative bid for Europe’s second-largest steelmaker. The deal is key for Thyssenkrupp as the submarines-to-car parts group seeks to become leaner and more focused.
One option under discussion would see Jindal Steel take a majority stake in Thyssenkrupp Steel Europe, likely 60%, in a first step, with the remaining 40% acquired later in two 20% tranches or in one go, depending on progress in restructuring, the people said.
A phased transaction would give Thyssenkrupp AG more flexibility to address about €2.5 billion (~$2.9 billion) in pension liabilities tied to Thyssenkrupp Steel Europe—a major hurdle in previous sale attempts, one of the people said.
Details of how a gradual takeover could be structured and its impact on debt obligations have not previously been reported. Due diligence is ongoing and terms could still change, the people said.
Thyssenkrupp-Jindal Steel deal
A sale of Thyssenkrupp Steel Europe would end years of efforts to find a buyer for an asset that, while central to Germany’s industrial heritage, has been volatile and costly to run amid tougher Asian competition.
For Jindal Steel International, the international steel arm of the Naveen Jindal Group, it would mark a major expansion into Europe after buying smaller Czech peer Vitkovice Steel in 2024.
Thyssenkrupp said in a statement that all aspects of the transaction—including valuation, obligations and future investments—would be discussed during due diligence and any contract talks. “We can’t comment on individual statements, which at this stage can only represent an interim status,” it said.
Jindal Steel International had no immediate comment.
Jindal Steel to visit Germany in January
A second person said that a Jindal Steel delegation was scheduled to visit Germany in January for a technical review of Thyssenkrupp Steel Europe’s Duisburg plant, after a planned December trip was postponed.
A phased takeover would also keep Thyssenkrupp involved in Thyssenkrupp Steel Europe’s restructuring, a third person said.
In December 2025, Thyssenkrupp CEO Miguel Lopez said Jindal Steel was an optimal fit for his company’s steel unit, adding that a sweeping restructuring plan to cut jobs and capacity had prompted the Indian group’s interest. Still, Lopez said Thyssenkrupp still had a plan B if talks with Jindal Steel International fail, without giving details.
Reuters’ Neha Arora and Aditya Kalra in New Delhi contributed to this story.