EPCG divests Thyssenkrupp Steel Europe stake as Jindal bid reshapes future

Thyssenkrupp

Thyssenkrupp Steel Europe stake negotiations have shifted sharply as EPCG exits and Jindal emerges as the preferred partner. The Thyssenkrupp Steel Europe stake will now likely anchor a new strategic direction focused on low-emission steel. As a result, the evolving ownership of the Thyssenkrupp Steel Europe stake will influence Europe’s decarbonisation trajectory and regional steel competition.

EPCG steps aside to clear path for Jindal Steel

EPCG agreed to divest its 20pc holding in Thyssenkrupp Steel Europe and withdraw from all joint-venture talks. The investment firm will return its Thyssenkrupp Steel Europe stake and receive full reimbursement of the purchase price. This move reflects Thyssenkrupp’s decision to concentrate negotiations on a single strategic bidder.

Previously, EPCG had planned to lift its stake from 20pc to 50pc and form a 50:50 joint venture. However, the situation changed once Indian producer Jindal Steel submitted an indicative bid for the business. Therefore, Thyssenkrupp is now prioritising a potential deal that couples ownership change with major green-steel investment.

Jindal promises decarbonised steel platform in Europe

Jindal Steel’s bid includes a commitment to complete the DRI project in Duisburg and add new EAF capacity. The group has signalled a financial commitment of more than €2bn to build this low-emission production base. Although the offer remains non-binding, Jindal says it aims to transform the company into Europe’s largest integrated low-emission steelmaker.

This pathway would align Thyssenkrupp Steel Europe with EU decarbonisation policy and future carbon cost pressures. At the same time, Thyssenkrupp is also exploring the sale of its 50pc stake in HKM, further reshaping its steel portfolio. Together, these moves point to a deep restructuring of German steel assets and ownership.

The Metalnomist Commentary

This pivot from EPCG to Jindal underlines how strategic buyers now link ownership with decarbonisation capital. For European steel, the key question is whether promised DRI and EAF investments materialise fast enough to preserve competitiveness. If executed, Jindal’s plan could turn Thyssenkrupp into a flagship low-emission hub, but integration and policy risks remain significant.