Britain-based Liberty Steel, intending to purchase thyssenkrupp’s faltering steel division had its plans cut short after the German company decided to call off the talks.

 

Thyssenkrupp cited differing outlooks over the structure and price value of the unit as reasons that led to the end of a potential deal. However, Liberty has left the door open to resume negotiations as of Thursday, according to reports.

 

Per media reports, thyssenkrupp said it is no longer considering selling the steel unit to Liberty and regrets the decision since it previously thought of Liberty as a critical partner in this course of action. The company is now focused on independently protecting its steel business’s sustainability.

 

Liberty proposed a firm bid for Thyssenkrupp’s steel sector in January that also included job and site protection assurances. The bid assumed the steel unit is worth a negative equity value of over €1bn ($1.21bn), per reports.

 

The German company followed up asking for clarity on several aspects of the bid in early February while expressing it would continue to look into other options. More recent media reports place the value range of the steel division closer to €0 and negative €400mn.

 

Liberty expressed confidence that it presented the only long-term solution for thyssenkrupp’s steel business to remain viable and plans to continue efforts to join and eventually agree on valuation, per reports.

 

(€1 = $1.21)

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