(Updated: with more details)
FRANKFURT (dpa-AFX Broker) - Concerns over a potential collapse of the steel deal with India's Jindal Steel & Power put Thyssenkrupp shares under increasing pressure throughout Thursday afternoon. The stock slumped by around 10 percent to 8.11 euros, reaching its lowest level since mid-September 2025. The year's previous gains, which had already evaporated between early February and early March, have now turned into a 12.5 percent loss year-to-date.
The additional pressure on the already weak stock was triggered by fresh doubts that a transaction between Thyssenkrupp Steel Europe (TKSE) and the family-run Indian steel group will materialize. "It would be very bad for Thyssenkrupp if Jindal Steel's entry into TKSE fails," commented equity expert Frederik Altmann from Alpha-Wertpapierhandel. "The steel business has long been a heavy millstone around Thyssen's neck, and market hopes are high that a solution could finally be found after a long search."
It was announced in mid-September last year that negotiations with Jindal were underway. While the initial response from trade unions was positive, analysts had already expressed caution at the time. For instance, Dominic O'Kane from the US bank JPMorgan raised concerns that there was no evidence yet that Jindal's takeover bid would be value-enhancing. Ephrem Ravi from Citigroup highlighted the high pension obligations. Then, in late November, the IG Metall union stated it would only agree to a potential sale if there was an agreement regarding employee interests.
The steel division, Thyssenkrupp Steel, is Germany's largest steel producer. The company fell into crisis due to economic weakness and the resulting overcapacity, as well as high energy prices and cheap imports from Asia. The restructuring process currently underway is expected to result in losses amounting to millions for the group in the 2025/26 fiscal year, which runs until the end of September. This includes the cutting and outsourcing of thousands of jobs.
Jindal is also reported to have demanded further cost reductions during the takeover negotiations, as the "Rheinische Post" reported in mid-January. Since then, things have gone quiet regarding the project. Most recently, at the end of January, Thyssenkrupp CEO Miguel López remained tight-lipped during the annual general meeting, speaking only of a "constructive exchange" with Jindal./ck/la/mis
