ThyssenKrupp

Reuters is reporting that talks with Jindal Steel on Steel Europe could be called off as early as next month due to disagreements on pension liabilities, investments and energy costs. 

Not so much of a surprise, keeping in mind that the name of Jindal first emerged mid-september 2025 (6 months ago) … quite obvious that there are hurdles in the deal, plus the ever changing external factors (EU tariffs in the positive one, the Iran conflict on the negative one) that do not help find an agreement.

We believe that the market is well aware of the potential risk of talks failing. But making such a failure official would hurt the share price in the very short term.

Keep in mind though that the ongoing restructuring (clear improvement as of late) plus the new CBAM and EU tariffs make Steel Europe less of a burden/rock in the shoe than it used to.

(As a reminder, the Steel Europe segment represents c.20% of the group’s gross assets at €2.8bn in our NAV).

Expert Opinion:
First we would be cautious on the news itself. While it is very possible that no agreement is found, these kinds of leaks can also be a way to increase pressure to strike a deal. But as Fabrice mentions, with the expected fundamental improvement for the European steel sector in sight, the need for a deal is less than it used to be, and a failure of the talks wouldn't be a game changer for our investment thesis, especially if it enables us to enter at a lower price. Stock already retreated from EUR12.3 to EUR8.3. 

Definitely a stock to have on your radar.  


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