Liberty Steel made a non-binding offer for thyssenkrupp’s steel unit on Friday citing its support for advocating Europe’s drive toward carbon-neutral steel production.
An agreement would mean joining Europe’s second and fourth-largest steelmakers following joint venture attempts involving thyssenkrupp and Tata steel that were opposed in 2019, according to media reports.
The German conglomerate said it will investigate the new proposal as it also continues discussions with other possible associates that include Salzgitter, SSAB, and Tata Steel. These comments trail the company’s account on Oct 13 that it will consider all options including state involvement.
Germany’s union IG Metall is against any potential bids, as it believes the change could lead to job cuts. Thus, the steelmaker’s interest comes amid protests held by thyssenkrupp’s steelworkers compelling the government to assist its steel unit.
Price tags and further details for the expected consolidation have not been disclosed.
Liberty Steel, a unit of GFG, has 13mn mt of yearly steel capacity in Europe which represents 72pc of the continent’s total but is currently without production in Germany. Liberty expressed confidence in green steel investments saying it would bring a lasting change and benefit to the European steel industry.