ThyssenKrupp May Permit Due Diligence by Liberty Steel – Report
Reuters, citing people familiar with the matter, reported that ThyssenKrupp could give Liberty Steel access to the books of its steel unit as soon as next
Reuters, citing people familiar with the matter, reported that ThyssenKrupp could give Liberty Steel access to the books of its steel unit as soon as next week but no final decisions have been made and there could be delays. If due diligence is given, it would signal a step forward after Liberty Steel‘s nonbinding offer for ThyssenKrupp’s steel business. But questions remain about the value, structure, funding and viability of Liberty’s bid. GFG Alliance’s LIBERTY Steel Group announced on October 16 that it has made a non binding indicative offer as part of a ThyssenKrupp led process to acquire the steel activities of ThyssenKrupp. LIBERTY Steel’s current proposal is a non binding indicative offer subject to certain assumptions about the business.
Liberty Steel’s bid is strengthened due to consolidation talks between Sweden’s SSAB and Tata Steel that could result in a deal and potentially leave Liberty Steel as the sole bidder for ThyssenKrupp Steel Europe.
The takeover offer from Liberty Steel also met with a positive response from State Minister for Economic Affairs and Energy of North Rhine-Westphalia Mr Andreas Pinkwart. He told German Business Paper Handelsblatt last week "He presented a well-founded concept that is very much guided by the transformation to green steel. It seems that ThyssenKrupp's steel business and its plants elsewhere in Europe could complement each other well. This is a useful basis for discussion.”
However Liberty bid has met resistance from the union. ThyssenKrupp Steel Europe Works Council chief Mr Tekin Nasikkol recently told Handelsblatt that there were ambiguities in the financing. "Raising the money for the purchase is one thing, continuing to operate and develop our locations is much more important for us."