Thyssenkrupp doubtful about sealing Jindal Steel deal

SENIOR OFFICIALS AT German company Thyssenkrupp are increasingly doubtful that a potential deal to sell the company’s steel division to Jindal Steel International can be agreed, people familiar with the matter said.

- WILLIAM WILKES & EYK HENNING March 12

Talks with Jindal are wavering on several important issues, including how much funding the group would be able to provide to support Thyssenkrupp Steel Europe (TKSE) through a prolonged downturn in Europe’s steel market, according to the people.

There have also been disagreements over how much cash Thyssenkrupp itself would need to inject into TKSE before handing control to a new owner, the people said, asking not to be identified because the information is confidential. Thyssenkrupp could have to commit at least €2 billion ($2.3 billion) over a period of time to make a deal work, the people said.