Jindal Steel Expands Due Diligence on Thyssenkrupp Steel Europe
October 22, 2025 – India’s Jindal Steel International will expand its due diligence on Thyssenkrupp Steel Europe (TKSE) next week as part of ongoing talks to acquire the German steelmaker, according to sources familiar with the matter.
A Jindal delegation is expected to visit TKSE’s headquarters in Duisburg, Germany, to gain deeper access to financial and operational data ahead of key negotiations later this year. Thyssenkrupp confirmed that official due diligence had begun, including on-site inspections, but declined to comment further.
Financial challenges and market response
One major obstacle in the deal is TKSE’s €2.7 billion ($3.2 billion) pension liability. While Jindal may assume part of that burden, Thyssenkrupp would likely need to make substantial financial commitments, which could result in a negative equity valuation.
TKSE employs around 26,000 people, representing 28% of Thyssenkrupp’s workforce, and has an estimated enterprise value of €2 billion, according to Jefferies. Following the news, Thyssenkrupp shares rose up to 3.2% on Tuesday trading in Frankfurt.
Commitment to green steel and cooperation
During an October visit to Germany, Jindal Group Chairman Naveen Jindal met Thyssenkrupp executives, labor representatives, and the premier of North Rhine-Westphalia. Jindal pledged over €2 billion to build a direct-reduction plant in Duisburg for carbon-neutral steel production and additional electric-arc furnace capacity, supported by high-grade iron ore from the company’s Cameroon mines.
German labor union IG Metall welcomed Jindal’s collaborative approach. “The Jindal family understands and lives steel — it’s very refreshing,” said Juergen Kerner, Deputy Chair of Thyssenkrupp’s Supervisory Board.
Expanding european presence
The move aligns with Jindal Steel’s broader European expansion strategy. The group previously acquired Vitkovice Steel in the Czech Republic and has participated in the bidding for Italy’s Ilva Steel Plant.
If completed, the deal would mark one of Europe’s largest steel mergers in recent years, reinforcing the industry’s shift toward sustainable production.
Source: Reuters, October 22 2025
