thyssenkrupp AG and Jindal Steel International suspend negotiations on sale of shares

thyssenkrupp AG and Jindal Steel International have mutually agreed to suspend negotiations on the sale of shares in Thyssenkrupp Steel Europe. The parties stated that this decision was influenced by the changed market conditions and underlying assumptions in recent months. The company's statement highlights that thyssenkrupp has made significant progress in restructuring its steel segment. In particular, the collective restructuring agreement reached with IG Metall and the shareholders' agreement on the future of the southern Duisburg plant were highlighted as key elements of this process. It was also noted that the regulatory framework in Europe has changed significantly, becoming more favorable. The European Union positions steel production as a strategic sector and has strengthened protection measures against global overcapacity and dumping consequences. Key steps include tightening import quotas, doubling tariffs in case quotas are exceeded, introducing a mechanism for regulating carbon boundaries, and developing an EU Action Plan for Steel production. Despite rising energy prices due to the war in Ukraine, the long-term prospects for the sector have become more stable. thyssenkrupp AG CEO Miguel Lopez, assessing the future of steel production, said that the conditions for profitable growth are better now than in the past, thanks to an agreement in principle within the company, with trade unions and politicians in Europe. Lopez said Jindal has been a constructive partner throughout the process, but both sides have agreed to suspend negotiations for now. Narendra Misra thanked for the cooperation carried out during the negotiations, stating that despite the suspension of the agreement, relations between the parties continue and the goal of producing low-carbon steel in Europe remains unchanged. The company stressed that its goal of making thyssenkrupp Steel Europe an independent company remains unchanged. Accordingly, the restructuring process in the company will continue. It was stated that the industrial strategy developed in recent months and the agreements reached with the trade unions provide a solid foundation for overcoming structural problems. In addition, it was noted that the agreement reached with Salzgitter AG in February regarding the future of the HKM plant opens up new prospects for the company in the southern part of Duisburg. It was also stated that policy makers are stepping up their actions in relation to this sector, especially regarding unfair competition and global overcapacity. thyssenkrupp AG plans to split up its business segments or open them up to outside investments as part of its strategy.