Home >Companies >News >Liberty Steel makes bid for Thyssenkrupp steel unit
Thyssenkrupp shares surged as much as 23%, and the Essen-based company said it would carefully study the offer even as it continues talks with other potential partners. bloomberg
Thyssenkrupp shares surged as much as 23%, and the Essen-based company said it would carefully study the offer even as it continues talks with other potential partners. bloomberg

Liberty Steel makes bid for Thyssenkrupp steel unit

A deal would combine the continent’s fourth- and second-largest steelmakers after a planned joint venture between Thyssenkrupp and Tata Steel was blocked in 2019

Liberty Steel, founded by commodities tycoon Sanjeev Gupta, on Friday said it had made a non-binding offer for Thyssenkrupp’s steel unit, boosting shares in the conglomerate and setting off a new wave of consolidation in the steel sector.

A deal would combine the continent’s fourth- and second-largest steelmakers after a planned joint venture between Thyssenkrupp and Tata Steel was blocked in 2019.

“Liberty Steel is convinced that a combination with Thyssenkrupp Steel Europe can be the right answer from an economic, social, and environmental perspective," it said in a statement, without disclosing financial details.

Thyssenkrupp shares surged as much as 23%, and the Essen-based company said it would carefully study the offer even as it continues talks with other potential partners.

Liberty said it was open to intensifying talks to explore making a binding offer for the unit. Germany’s most powerful union IG Metall has, however, opposed a potential bid, fearing it could lead to painful job cuts.

A sale of the steel business would mark a radical change in Thyssenkrupp’s composition and structure, following the divestment of its elevators business earlier this year.

Formed by Gupta last year, privately held Liberty Steel is a unit of Britain-based conglomerate GFG and comprises all of his family’s steel activities, with a view to a potential listing. It has been on a European buying spree, most recently in France, where it acquired the Hayange business previously owned by British Steel. reuters

feedback@livemint.com

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
My Reads Redeem a Gift Card Logout