SEATTLE (Scrap Monster): German steel conglomerate Thyssenkrupp announced that it has ended talks with steel tycoon Sanjeev Gupta-led Liberty Steel over the sale of its steel division to the latter. Furthermore, the company has decided to develop the division by using its own funds.
Klaus Keysberg, Chief Financial Officer, Thyssenkrupp noted that it had perceived Liberty Steel as a serious partner in the process. However, negotiations arrived at a conclusion that both the parties were far apart in their plans for the steel division. The ideas of the companies about the corporate value and the structure of the transaction were far apart, he added.
Meantime, Liberty Steel announced that the discussions stand suspended at this stage, mainly due to differences in pricing expectations. However, it claimed that the offer placed by the company was the only long-term sustainable plan for the steel unit. Unfortunately, both the companies failed to reach an agreement on the sale amount.
Liberty Steel had made its bid for the steel assets through GFG Alliance in October last year. However, all major unions representing the 27,000 around employees at Thyssenkrupp had raised objection, citing fears of widespread job losses.
The deal would have led to the merger of fourth-biggest and second-biggest steel producers of the European region.