U.S. investment fund Flacks Group said it would bid for Thyssenkrupp’s (TKAG.DE) steel division if current sale talks with Jindal Steel fail, sending shares up 2.2%. The potential backup offer adds pressure on ongoing negotiations for Europe’s second-largest steelmaker, which has struggled for years to divest the unit due to substantial pension liabilities.
Key Takeaways
- Flacks Group ready to bid if Jindal Steel talks collapse
- Thyssenkrupp shares jumped 2.2% on backup bidder news
- Steel unit restructuring includes up to 11,000 job cuts
Market Reaction & Context
Thyssenkrupp shares turned positive and climbed as much as 2.2% following news of Flacks Group’s interest 1. The German industrial conglomerate has been attempting to sell its steel division for years as part of CEO Miguel Lopez’s restructuring agenda.
Flacks Group, which describes itself as a leading investor in distressed assets and special situations globally, was selected by Italy in December for exclusive talks on acquiring bailed-out steel company Acciaierie d’Italia 1. The firm has also expressed interest in acquiring British Steel, according to previous reports.
Current Sale Process
Thyssenkrupp has been in talks with India’s Jindal Steel International since autumn about a possible sale of Thyssenkrupp Steel Europe (TKSE). However, these discussions have yet to produce a firm bid for the business.
The company ended long-standing discussions with Czech billionaire Daniel Kretinsky, who sold his 20% stake in the steel unit and scrapped plans to create a 50-50 joint venture 4. This development cleared the path for focused negotiations with Jindal Steel International.
Strategic Interest and Restructuring
Michael Flacks, CEO of Flacks Group, said his firm’s main interest remains in Italy but confirmed readiness to pursue Thyssenkrupp’s steel business if needed. “Our main interest is now in Italy, but we are interested in major steel companies, and if the talks regarding an acquisition of Thyssenkrupp’s steel business fail, we are ready to bid for it,” Flacks told Reuters 1.
A Thyssenkrupp spokesperson said the restructuring of TKSE, which includes cutting or outsourcing up to 11,000 jobs, had boosted the division’s attractiveness 1. The company remains in constructive talks with Jindal Steel International despite the lengthy negotiation process.
Industry Context
The potential sale comes amid growing uncertainty over European steelmaking’s future, driven by cheap Chinese imports, high energy costs, and delays in hydrogen-based decarbonization efforts 4. These challenges have made it difficult for traditional steel producers to maintain profitability and attract buyers.
Several efforts to divest Thyssenkrupp’s steel business have failed in recent years, primarily due to substantial pension liabilities tied to the unit. The division remains the most critical part of Lopez’s restructuring agenda for the storied German firm.
Outlook
The emergence of Flacks Group as a potential backup bidder could strengthen Thyssenkrupp’s negotiating position with Jindal Steel International. However, the company faces the same fundamental challenges that have derailed previous sale attempts, particularly the pension obligations that come with the steel operations.
Industry analysts view the restructuring measures, including significant job reductions, as necessary steps to make the division more attractive to potential buyers and improve its operational efficiency in a challenging market environment.
Not investment advice. For informational purposes only.
References
1Andres Gonzalez (March 5, 2026). “Flacks Group ‘ready to bid’ for Thyssenkrupp steel business if current sale talks fail”. Reuters. Retrieved March 5, 2026.
2Global Banking and Finance (March 5, 2026). “Flacks Group Ready to Bid for Thyssenkrupp Steel Unit if Sale Fails”. Global Banking and Finance. Retrieved March 5, 2026.
3TradingView (March 5, 2026). “Flacks Group is ‘ready to bid’ for Thyssenkrupp’s steel unit should current sale efforts fail”. TradingView. Retrieved March 5, 2026.
4Energy News (October 2, 2025). “Kretinsky sells Thyssenkrupp steel stake as JV plans falter”. Energy News. Retrieved March 5, 2026.
5Reuters (October 20, 2025). “UPDATE 1-Thyssenkrupp in ‘intensive’ talks with Jindal over sale of steel unit”. The Hindu BusinessLine. Retrieved March 5, 2026.