Thyssenkrupp's Steel Division Faces Uncertain Future After Failed Billionaire Negotiations

The future of Thyssenkrupp's steel division remains uncertain following the collapse of negotiations with billionaire investor Daniel Kretinsky. The company has now shifted its focus toward potential discussions with an Indian firm.

On October 2, 2025, Thyssenkrupp announced that plans for a joint venture in steel with Kretinsky's EP Group had been abandoned. The decision was mutually agreed upon, allowing both parties to move on. Thyssenkrupp expressed its intention to concentrate on negotiations with Jindal Steel International, which has made an indicative offer for Thyssenkrupp Steel Europe.

As part of this transition, the EP Group will return its 20% stake in Thyssenkrupp Steel Europe and receive a refund for its initial investment. This development follows years of uncertainty surrounding the future of Thyssenkrupp's steel operations, which have faced challenges due to overcapacity and the need for significant workforce reductions. Reports suggest that up to 11,000 of the approximately 27,000 jobs within the division may be eliminated or outsourced.

Last month, Jindal Steel International made headlines with its surprise acquisition proposal for Thyssenkrupp, prompting the company to conduct a thorough evaluation of the offer. Both the IG Metall union and the works council welcomed this initiative, criticizing Kretinsky for a perceived lack of transparency during the previous negotiations. Kretinsky's EP Group had acquired its initial stake in Thyssenkrupp Steel Europe in July 2024, but attempts to secure an additional 30% remained unfruitful.

The situation reflects ongoing challenges within the European steel industry, where companies are grappling with market pressures and the need to adapt to evolving economic conditions. As Thyssenkrupp navigates these complexities, the outcome of the discussions with Jindal Steel could play a pivotal role in determining the future direction of its steel division.