Bloomberg news agency reported that Emirates Arkan Steel Company is studying the possibility of investing in ThyssenKrupp Steel Works and may make a formal offer in the coming months.
The agency quoted sources familiar with the matter as saying that one of the options offered is the acquisition of a minority stake in ThyssenKrupp Steel by Emirates Arkan Steel as part of a commercial partnership.
It added that the Gulf Company would manufacture products powered by renewable energy before shipping them to Germany, where ThyssenKrupp could use them in the automotive industry.
According to the Bloomberg report, India’s JSW and CVC Capital Partners have expressed interest in ThyssenKrupp’s steel business in recent months.
Emirates Steel Arkan, CVC and JSW Group have not responded to requests for comment. ThyssenKrupp declined to comment on the report.
ThyssenKrupp has also been in initial talks with private equity management firms about selling a minority stake in its marine systems business, Bloomberg reported.
Earlier this week, Martina Merz resigned as CEO of ThyssenKrupp. Merz launched a major overhaul of the German industrial conglomerate.
Miguel Angel Lopez Borrego, who is expected to join the company on June 1, will be the fourth CEO in less than five years to try to streamline its industrial structure, which includes trading in submarines and auto parts.
