InvestorQ : Do you see the Liberty bid for Thyssen Krupp and Tata going through?
Chandralekha Desai made post

Do you see the Liberty bid for Thyssen Krupp and Tata going through?

NISHA Nayak answered.
9 months ago

Sanjeev Gupta founded Liberty Steel, based out of Europe, has made a non-binding offer for Thyssenkrupp’s steel unit. They were supposed to enter into a JV with Tata Steel Europe but it did not work out. Steel consolidation has been picking up of late.

It would essentially combine Europe’s fourth- and second-largest steelmakers in the aftermath of the planned joint venture between Thyssenkrupp and Tata Steel being blocked by the EU and the British government over finer details.

Liberty Steel wants to combine with Germany based Thyssenkrupp Steel Europe to consolidate and help recover rapidly from an economic, social, and environmental slowdown across large swathes of Europe.

Liberty said it was open to get deeper and also make a binding offer for the unit. However, the big challenge will be Germany’s most powerful union IG Metall. This union has consistently opposed a potential bid, fearing it could lead to painful job cuts.

Gupta is a commodities trader who floated Liberty Steel as a unit of Britain-based conglomerate GFG and comprises all his family’s steel interests. Liberty has recently taken a controlling interest in buying Hayange in France. Hayange was previously owned by British Steel.