German industrial giant Thyssenkrupp and Czech tycoon Daniel Kretinsky said Thursday they had abandoned plans for a joint steel business, paving the way for a potential takeover by India鈥檚 Jindal Steel.
鈥楾he EP Group and Thyssenkrupp AG have mutually agreed to end talks about a possible 50/50 joint venture for Thyssenkrupp Steel Europe,鈥� they said in a joint statement referring to Kretinsky鈥檚 holding company.
The EP Group would return its 20 percent stake in Thyssenkrupp Steel Europe (TKSE) to Thyssenkrupp, the statement added, and Thyssenkrupp would reimburse the purchase price to the EP Group.
Kretinsky鈥檚 divestment removes a possible obstacle to India鈥檚 Jindal Steel taking over Thyssenkrupp Steel Europe, part of the broader Thyssenkrupp group.
Jindal in September made a non-binding offer for TKSE, setting up a potential battle with Kretinsky for control of Germany鈥檚 largest steelmaker.
Thyssenkrupp said at the time that it would 鈥榗arefully review鈥� Jindal鈥檚 offer and pay 鈥榩articular attention鈥� to what it would mean for jobs.
