Thyssenkrupp is in advanced talks to divest its steel division (TKSE) to India’s Jindal Steel International in a multi-step transaction, according to four sources with direct knowledge of the negotiations. The proposal under consideration would see Thyssenkrupp retain a minority stake after an initial carve-out, with subsequent tranches of shares transferred to Jindal over a two- to three-year period. Thyssenkrupp’s steel business reported revenues of €12.3 billion in the most recent fiscal year and EBITDA of €1.1 billion, making it one of the group’s largest profit contributors outside of the elevator and automotive components units. The phased approach is designed to mitigate integration risks and ensure continuity of supply contracts with key European automotive customers, while providing Thyssenkrupp with liquidity to accelerate its €2 billion debt-reduction target by 2025. Jindal Steel, which produces over 20 million tonnes of steel annually in India, has committed to invest in modernization of Thyssenkrupp’s Duisburg and Bochum plants, including a €250 million upgrade to blast furnace infrastructure, subject to regulatory approvals from the European Commission and German Federal Cartel Office.