FRANKFURT (Reuters) -Czech billionaire Daniel Kretinsky is selling his 20% stake in Thyssenkrupp’s steel unit and also scrapped plans for a 50:50 joint venture for the business, both parties said in a joint statement, paving the way for a possible deal with Jindal Steel.
The stake sale ends lengthy talks over what could have become a German-Czech steel and energy giant, discussions that have not made any measurable progress since Kretinsky bought a fifth of Thyssenkrupp Steel Europe (TKSE) last year.
It now creates momentum for Thyssenkrupp to intensify talks with India’s Jindal Steel International, which last month presented an indicative bid for all of TKSE, a volatile business its parent has sought to divest for years.
The statement said that Kretinsky’s EP Group “respects Thyssenkrupp AG’s preference to concentrate on discussions with Jindal Steel International”.
The news comes as uncertainty over the prospect of steelmaking in Europe grows, suffering from cheap Chinese imports, high energy costs and a delay to hydrogen-based decarbonisation of what is one of the most polluting industries.
Kretinsky’s EP Group and Thyssenkrupp had the aim of eventually forming 50:50 joint venture for TKSE, but talks have been fraught with difficulties as powerful unions have accused the Czech businessman of refusing to engage.
(Reporting by Christoph Steitz; editing by Matthias Williams)
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