Thyssenkrupp steel is "perfect" for Jindal, Lopez said.
Thyssenkrupp group Executive Director Miguel Lopez is optimistic about the prospects for the purchase of tk's steel division by Jindal group.
On Tuesday, at the German concern's annual press conference, Lopez confirmed that Jindal is currently conducting a comprehensive audit, in-depth studying the financial structure and contracts of thyssenkrupp Steel. About two weeks ago, thyssenkrupp was still reluctant to confirm the due diligence when rumors about it appeared in the press.
.Unlike the previous candidate to buy tk Steel, the Czech EP group, Lopez noted that Jindal "is a true professional in the steel industry," including mining assets, so it covers the entire production chain. So Jindal would be a good fit for tk Steel, just as tk Steel would be a good fit for Jindal.
After Mittal and Tata, Jindal will become the next Indian player to lead Europe's largest steel producer. "Jindal is not active in Europe yet. So this[tk Steel]is an attractive result," Lopez said during a conference call watched by Callanish. He noted that Jindal has promised to continue tk Steel's project to build a DRI plant in Duisburg, which, according to him, complements Jindal's own project to build a DRI plant in Oman.
One point that is not yet clear and that raises questions from the journalists present is whether Jindal is seeking a full or only partial acquisition. At the moment, negotiations are "aimed at absorbing the majority," said executive director Volkmar Dinstuhl, who is responsible for mergers and acquisitions. "What the majority means will be seen as we go along," he added.
Dinstuhl also learned that the bidder for tk Steel is not actually Jindal Steel mill group, but Jindal Steel International, a division based in Mauritius. Observers have already expressed skepticism about whether a complex structure with low financial transparency can be trusted. Dinstuhl described it as "a guarantor company that is a backup for a company wishing to make an acquisition."
Author: Christian Kel Germany
Kallanish.com