Jindal Steel Expands Due Diligence on Thyssenkrupp Steel Europe

Consolidation among the world’s largest steelmakers — Jindal’s move on Thyssenkrupp Steel Europe being one of the largest in progress — tends to concentrate raw material pricing power in fewer hands over time, which is worth watching even for a Vietnamese fabricator with no direct exposure to either company: fewer, larger global steel producers generally means less price competition at the feedstock level.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.

Why a deal 8,000 km away still shows up in a Vietnamese fabricator’s cost model

The mechanism is indirect but real: as Jindal Steel builds out a European direct-reduction and electric-arc-furnace footprint on top of its existing Indian capacity, it becomes a larger vertically integrated player with more pricing influence over both scrap and green-steel feedstock — inputs that ripple into global steel pricing benchmarks Asian fabricators reference, Truong Thinh Corp included, even without buying directly from either company. The scale of this deal (potentially one of Europe’s largest steel mergers in recent years, per the article) is what makes it worth tracking rather than treating as unrelated industry news. Source: Reuters, October 22 2025

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