Synopsis:
Jindal Steel International has made a non-binding bid for Thyssenkrupp Steel Europe, Germany’s largest steelmaker with sales over Rs 1 lakh crore. This proposal includes Rs 21,000 crore for green transformation, building a low-emission DRI plant, expanding electric arc furnace capacity, and taking on pension liabilities, marking a bold move into the European steel market.
The shares of the third largest Indian steel producer (by market capitalization) is in focus as it makes a key move by trying to acquire a largest market of europe. In this article, we will dive more into the details.
With a market capitalization of Rs 1,06,579 crore, the shares of Jindal Steel Ltd made a day high of Rs 1058.30 per share, up by 0.54 percent from its previous day closing price of Rs 1052.70 per share. Over the past five years, the stock has delivered a superior return of 427 percent as compared to the NIFTY 50 return of 120 percent.
About the news
On the 16th of September, 2025, Thyssenkrupp made a public announcement that it had received a non-binding proposal from the Indian Naveen Jindal Group, more precisely from the part of Jindal Steel, for the steel division of Thyssenkrupp, that is Thyssenkrupp Steel Europe (TKSE).
This division is the largest steelmaker in Germany, with sales of €10.7 billion (Rs 1,11,280 crore) in the last year. Such a bid is interpreted as a big step in the ongoing effort Thyssenkrupp undertakes to divest from its steel business and simplify its operations.
The offer from Jindal Steel International incorporates not just the pledge of more than €2 billion (Rs 21,000 crore) for the sustainable transformation of TKSE but also the completion of a low-emission direct reduction iron (DRI) plant in Duisburg and the increase of the electric arc furnace capacity.
Additionally, Jindal has also made it clear that it is ready to take over the pension liabilities of TKSE, which have always been the most challenging obstacles in going for a sell-off.
Thyssenkrupp has expressed that to them, the evaluation of the offer will be done with closeness, where the key focus will be on economic viability, maintainability of the clean transformation, and the steel sites’ employment impact.
The IG Metall union, the most powerful one, which was not happy with Thyssenkrupp’s last stake sale to billionaire Daniel Kretinsky from the Czech Republic, has given the new offer a warm welcome and stressed the necessity of going into immediate and real talks to find solutions to the main problems identified.
The event is a sign that the Indian companies are looking ever more eagerly to the European steel market. To put it in another way, Jindal Steel International steps strategically into the world market to extend its reach.
This acquisition, which is being proposed, has the power to cause a major reshuffling of the European steel industry if it comes about, with the ripple effects of competition, employment, and sustainability practices possibly being the consequence of such a move.
Written by Satyajeet Mukherjee
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