Thyssenkrupp has decided to exit negotiations with Kretinsky's group after the collapse of their joint steel venture plans, which had faced opposition from unions and management disagreements.

This decision follows Thyssenkrupp's receipt of a serious takeover offer from Indian company Jindal Steel International, which is currently under review and aims to modernize and expand Thyssenkrupp Steel into Europe's largest low-emission steel producer.

Jindal emphasizes its commitment to green steel production in Germany and Europe, offering secure supply chains and investing over €2 billion in electric arc furnace development and green projects in Duisburg.

The move to focus on Jindal's bid is driven by ongoing challenges in European steelmaking, including cheap Chinese imports, high energy costs, and delays in hydrogen-based decarbonization efforts.

Thyssenkrupp's steel division has been under pressure due to overcapacity, low prices, and the need to adopt more climate-friendly production methods, prompting a strategic shift away from steel manufacturing.

Kretinsky's EP Group, which acquired a 20 percent stake in Thyssenkrupp Steel Europe last year, will be reimbursed around €140 million for its stake, as the joint venture plans were abandoned.

Thyssenkrupp's shares rose following the announcement, reflecting market optimism about its strategic direction, while the company plans to reduce steel workforce by 11,000 jobs by 2030 and cut capacity from 11.5 to 9 million tons annually.

Jindal's offer includes assuming approximately €2.7 billion of Thyssenkrupp's pension obligations, potentially giving it a competitive advantage by producing in a region unaffected by the Carbon Border Adjustment Mechanism.

The company has been evaluating the offer since September, with positive reactions from employee representatives and unions, although some criticism over transparency remains.

This development marks a significant shift from previous efforts to create a German-Czech steel and energy conglomerate, which have seen little progress since Kretinsky's initial stake acquisition.

Thyssenkrupp's strategic focus is now shifting toward other business areas, as it seeks to stabilize its operations amid industry-wide uncertainties and ongoing efforts to develop greener steel technologies.