Jindal’s bid for Thyssenkrupp Steel is not just a strategic acquisition—it’s a proving ground for Venkatesh Jindal
Jindal Steel’s bid for Thyssenkrupp Steel Europe—led by Venkatesh Jindal—faces union diplomacy, government scrutiny, and rivalry from Czech billionaire Kretinsky.
Mumbai: Jindal Steel International’s pursuit of Thyssenkrupp Steel Europe marks a crucial moment for the group, and for its next-generation leader-in-waiting, Venkatesh Jindal. At just 29, the Yale and Harvard-educated son of chairperson Naveen Jindal is part of the core team currently in Germany negotiating the high-stakes acquisition.
The team also includes Naveen Jindal, Narendra Misra, Jindal's director of European Operations, and a handful of other executives. It is currently in Germany.
The third-generation successor of steel magnate OP Jindal has his task cut out for him. The negotiating team has to convince the German government and labour unions to give their blessings to the deal. Labour unions have a significant sway over mergers and acquisitions in Europe. Meanwhile, the German government will also need comfort before allowing the sale of a strategically important asset and a large employer to a non-European owner.
The team from Jindal Steel has already started canvassing with unions to get them to back the deal, said a third person, who is based in Germany. All three people spoke on the condition of anonymity as they are not authorized to speak to the media.
Jindal Steel International has not yet submitted a firm financial offer for Thyssenkrupp Steel Europe as it is yet to evaluate the value of the asset after going through its books of account.
Unions and government aside, Jindal will also have to contend with the Czech Republic’s energy company EP Corporate Group (EPCG). Thyssenkrupp, which has been trying to divest from its steel business for several years now, sold a 20% stake in its steel business last year to EPCG, which is controlled by billionaire Daniel Kretinsky. The two partners are discussing a further 30% stake sale to form a 50:50 joint venture.
Thyssenkrupp AG has not disclosed the valuation at which it sold the 20% stake in Thyssenkrupp Steel Europe to EPCG.
Thyssenkrupp Steel Europe complements Jindal Steel’s private assets. While the group gets its iron ore in Africa, it turns that ore into direct reduced iron (DRI) and then into steel in Oman. The group is setting up two new DRI furnaces in Oman, which could serve as the feeders for low-emission steelmaking at Thyssenkrupp.
The group also plans to ship iron ore from Africa to Germany to be used at Thyssenkrupp's upcoming DRI furnace which is under construction. The acquisition will also give the group a foothold in the lucrative European steel market which throttles imports to protect its domestic steel companies.
- Venkatesh Jindal, son of Jindal Steel chairperson Naveen, is leading Jindal Steel’s bid for Thyssenkrupp, marking a major succession test.
- Labour unions and the German government are key stakeholders in the acquisition process.
- Czech billionaire Daniel Kretinsky’s EPCG is a rival bidder with an existing stake.
- Venkatesh Jindal oversees global assets and is developing a hydrogen-ready steel plant in Oman.
- The acquisition could position him for the vacant managing director role at Jindal Steel.
Handling overseas business
Jindal’s acquisition bid for Thyssenkrupp comes at a time when the young scion’s cousin, Parth Jindal, 35, has successfully led a major acquisition of AkzoNobel India as well as the public market listing of JSW Cement this year. His other cousin, Abhyuday Jindal, 34, has successfully scripted the turnaround of Jindal Stainless from near bankruptcy. He also leads the industry body, the Indian Chamber of Commerce, as its president.
The Jindal Steel Group did not respond to Mint’s request for a comment.
Venkatesh joined the family business around five years ago. Before joining Jindal Steel, he was a summer associate at Boston Consulting Group in 2017 and an investment banking summer analyst at Religare in 2016.
Jindal shuttles between London and New Delhi, where he has offices, and is being groomed by his father and senior group executives to succeed as the group’s next leader, persons in the know said.
He looks after the group’s private business overseas, which includes mines in Mozambique and Cameroon, a 3-million-tonnes-per-annum (mtpa) steel complex in Oman and a downstream steel processing plant in the Czech Republic, said two people in the know.
Venkatesh is also overseeing the development of a 5-mtpa direct reduced iron plant at Duqm in Oman. The plant will have two DRI furnaces that will be designed to run using hydrogen. DRI is an input material for making steel in an electric arc furnace, which runs on electricity.
Scheduled to start in two phases from 2028, the furnaces will run on natural gas initially until green hydrogen becomes readily available. The plant is the outcome of a project during Jindal’s MBA at Harvard.
No formal role
Jindal Steel International has made a few acquisitions in recent years during Venkatesh’s time with the firm. These acquisitions include the buyout of Czech Republic-based Vítkovice Steel in December for an undisclosed sum. Another acquisition was that of a coal mine in Mozambique from Brazil’s Vale in 2021 in a deal valued at $270 million.
During his tenure, Jindal Steel International also acquired the Jindal Shadeed Iron & Steel—the Oman-based 3 mtpa steel complex—from the group’s listed company Jindal Steel Ltd, for an enterprise value of $1 billion.
However, none of these buyouts has been on the scale of Thyssenkrupp Steel Europe.
A media-shy executive, Jindal has stayed away from the public glare so far, even as the group stitches together its mine-to-metal business spanning three continents. He has no public social media profiles, including on LinkedIn. He plays polo.
Interestingly, Venkatesh Jindal holds no formal position within the group companies. He serves as an advisor.
Listed company Jindal Steel has kept its managing director position vacant since incumbent Bimlendra Jha stepped down in January 2024. Those tracking the company say that Venkatesh is being groomed to take over the position. A successful high-stakes acquisition could likely bolster his resume for the job.
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