India's Jindal Steel Makes Non-Binding Offer for Thyssenkrupp Steel Europe - 2nd Update

By Cristina Gallardo and Sarah Sloat

Shares in Thyssenkrupp jumped after the company said it received a non-binding offer from Jindal Steel for its European steel operations, a business the German industrial group has long sought to sell.

"The executive board of Thyssenkrupp will examine the offer closely, particularly with regard to economic sustainability, the continuation of the green transformation, and employment at our steel locations," the company said.

Thyssenkrupp's shares traded 4.7% higher at 11.47 euros in the European afternoon, after rising nearly 8% after the offer was disclosed.

The offer comes as Thyssenkrupp attempts to reduce complexity, boost competitiveness and increase profitability. Earlier this year, it announced a cost-cutting drive, involving thousands of job cuts and reduced salaries for its steel workers.

Thyssenkrupp has tried unsuccessfully a number of times to sell its steel business. An attempt to sell the business to Britain-based Liberty Steel Group fell through in 2021 after the parties failed to reach an agreement. A prior deal with India's Tata Steel was blocked by European Union competition authorities.

In May last year, entrepreneur Daniel Kretinsky acquired a 20% stake in the steel business through his holding company EPCG, and there have been talks about EPCG potentially raising its stake.

Narendra Misra, director of European operations at Jindal, said Tuesday that the Indian company aims to transform Thyssenkrupp's steel business into Europe's largest integrated low-emissions steelmaker.

Jindal has put forward a plan to decarbonize the business and make its production of steel in Germany competitive, the company said.

If acquired by Jindal, Thyssenkrupp Steel will benefit from the additional supply of Jindal's new plant in Oman, which is scheduled to start operations in 2027, as well as iron ore from its mines in Cameroon, the Indian company said.

By integrating into Jindal's supply chain, TK Steel will stay competitive across all economic cycles, Jindal added.

The Indian company also plans to invest in new electric arc furnace capacity in Germany, increasing TK Steel's production of low-emission steel, Jindal said.

Write to Cristina Gallardo at cristina.gallardo@wsj.com and Sarah Sloat at sarah.sloat@wsj.com