Liberty Steel, which is led by commodities tycoon Sanjeev Gupta, last month submitted a firmed-up nonbinding bid for Thyssenkrupp’s steel division, the continent’s No. 2, which sources said included commitments to protect jobs and sites.
“We regret this step because we perceived Liberty Steel as a serious partner in the process,” Thyssenkrupp Chief Financial Officer Klaus Keysberg said in a statement.
Thyssenkrupp’s move to terminate talks shifts the focus to the group’s two other scenarios for its steel division: keeping it or spinning it off to shareholders. Both would entail major additional cost and job cuts.
In an internal memo to staff, Keysberg said differing views over the value of the division, financing structure and guarantees were the key reasons to end discussions.
