Liberty Steel Announces Indicative Offer to Acquire Thyssenkrupp Steel Assets

SEATTLE (Scrap Monster): Liberty Steel Group has made a nonbinding indicative offer (NBIO) to acquire the steel business run by Thyssenkrupp. The indicative offer is supported by several financial institutions and is based on non-exclusive talks. The official announcement came yesterday.

Commenting on the development, Liberty Steel issued a news release, which states that the combination with Thyssenkrupp Europe would result in creation of a strong group that will be capable of tackling the challenges faced by the European steel industry. Furthermore, it will accelerate the transformation into a more environment-friendly steel production. The businesses are complementary to each other, it noted.

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Meantime, Liberty Steel announced that it is quite uncertain whether the discussions will lead to any agreement or transaction. Also, the terms of a potential binding offer could deviate from the current NBIO. The company has decided to intensify its dialogue process with Thyssenkrup. Reportedly, company Chief Executive Sanjeev Gupta is already in Germany to head the talks.

Thyssenkrup-Europe’s second largest steel producer, has been suffering from weak steel market. The company had earlier held talks with SSAB and Tata Steel on possibilities including outright sale of its assets.