FRANKFURT, March 20 (Reuters) - A senior official at a German trade union on Friday said that Jindal Steel International has repeatedly delayed answering labour representatives' questions on the
Thyssenkrupp steel sale talks with Jindal stalled, deputy chairman says
Stalled Negotiations and Implications for Thyssenkrupp's Steel Division
FRANKFURT, March 20 (Reuters) - Talks to sell Thyssenkrupp's steel division to India's Jindal Steel International are not making progress and the long-awaited deal must not be stalled for months, the German company's deputy supervisory board chairman said on Friday.
Juergen Kerner, who is also the deputy head of Germany's IG Metall trade union, said labour representatives had presented Jindal, which has been doing due diligence on Thyssenkrupp's steel unit, also known as TKSE, since October, with a detailed questionnaire.
Concerns from Labour Representatives
Workers Left in Limbo
WORKERS LEFT IN LIMBO
"We were promised answers, but these have subsequently been postponed several times. Apparently, the discussions between Thyssenkrupp AG and Jindal are taking longer than expected," Kerner said in a statement.
"So things are not moving forward, and that is a bad thing," Kerner said because workers could not "afford to be left in limbo for months".
Background of the Proposed Deal
Jindal's Bid and Strategic Importance
In September, Jindal made a non-binding bid for TKSE, Europe's No. 2 steelmaker, creating a new opportunity for parent Thyssenkrupp to part with a volatile business that it has sought to sell for years.
Current Status of Negotiations
Statements from Thyssenkrupp and Jindal
A Thyssenkrupp spokesperson said talks with Jindal Steel were ongoing, also referring to comments by CEO Miguel Lopez last week, who said that discussions covered valuation and future investments and that TKSE would be made fit for the future, with or without Jindal.
A spokesperson for Jindal Steel International said it remained in discussions with Thyssenkrupp and was convinced its "industrial concept for Thyssenkrupp Steel offers a clear vision for low-emission and competitive steel production in Germany".
Kerner's comments were first reported by German newspaper Rheinische Post.
Potential Alternative Buyers
Interest from Flacks Group
Earlier this month, Flacks Group, a U.S. investor in distressed assets, signalled it could step in as potential buyer of TKSE if current talks fall through.
Strategic Context and Future Outlook
EU Measures and CEO Strategy
Lopez said in February that planned EU measures to protect the bloc's struggling steel sector have boosted investor sentiment and strengthened Thyssenkrupp's position in the talks with Jindal.
TKSE's Role in Thyssenkrupp's Transformation
A solution for TKSE, which is closely tied to Germany's industrial history, is seen as the centrepiece of the CEO's strategy to turn the sprawling group into a holding.
(Reporting by Christoph Steitz, writing by Ludwig Burger, editing by Thomas Seythal and Tomasz Janowski)
