The planned sale of Thyssenkrupp’s steel division has stalled, driving the company’s stock to a modern 52-week low as the industrial conglomerate grapples with significant losses and pressure to demonstrate progress at its Materials Services subsidiary.
Negotiations with Jindal Steel & Power regarding the sale of Thyssenkrupp Steel are increasingly doubtful, according to individuals familiar with the discussions. The company’s share price fell to €7.80 on March 14, 2026, a decline of more than 36 percent in the past month alone.
The impasse in talks with Jindal centers on several key issues. Jindal is demanding further cost reductions, while IG Metall, the powerful German labor union, is insisting on extensive job guarantees as a condition of its approval. A core challenge remains the uncertainty surrounding the level of capital Jindal is prepared to invest to support Thyssenkrupp Steel Europe through the ongoing downturn in the European steel market, which is simultaneously burdened by overcapacity, inexpensive imports, and the costs associated with decarbonization.
Should the deal collapse, Thyssenkrupp will be left without a clear strategy for its struggling steel business. Restructuring costs within Steel Europe amounted to €401 million in the first quarter of the 2025/26 fiscal year, contributing to a net loss of €334 million for the group. Management anticipates a net loss of between €400 and €800 million for the full year.
Alongside the difficulties with the steel division, Thyssenkrupp faces scrutiny of its Materials Services business, which generates €11.4 billion in annual revenue and employs over 15,000 people. The company must demonstrate operational improvements by the end of March, or face the prospect of a spin-off, initial public offering (IPO), or sale. An IPO is reportedly being considered as early as autumn 2026.
Progress on “green steel” initiatives has also encountered obstacles. Thyssenkrupp has paused the procurement of hydrogen for its Duisburg plant after submitted price offers significantly exceeded expectations. However, construction of the direct reduction plant remains on schedule. Recent milestones include a December 2025 labor agreement and an agreement with Salzgitter regarding the future of HKM, with the transfer of shares planned for June 1, 2026.
A relative bright spot for Thyssenkrupp is its marine systems division, TKMS, which was listed on the stock exchange in October 2025 and has been trading on the MDAX since December. TKMS currently holds a substantial order backlog of €18.7 billion and is the sole bidder for the German Navy’s F127 frigate program, as well as a potential contract for up to twelve submarines for Canada.
Thyssenkrupp is scheduled to release its semi-annual report on May 12, 2026. The operational performance of Materials Services and the outcome of the Jindal negotiations will be key indicators of whether the company’s restructuring efforts remain on track.
