Emirates Steel Is Said to Walk Away From Thyssenkrupp Steel Deal - Bloomberg

Emirates Steel Is Said to Walk Away From Thyssenkrupp Steel Deal - Bloomberg

Emirates Steel Arkan is walking away from a potential investment in Thyssenkrupp AG’s steel arm, dealing a fresh blow to the German conglomerate’s plans to offload the struggling operations, people with knowledge of the matter said.

The state-backed Abu Dhabi company has stopped actively pursuing a deal due to concerns over pension liabilities and other complexities of the business, the people said. Emirates Steel was considered the most serious contender to buy a stake in the Thyssenkrupp unit.

Interest from India’s JSW Steel Ltd. has also waned, the people said, asking not to be identified because the information is private.

The development could hamper efforts by Thyssenkrupp’s new chief executive officer, Miguel Angel Lopez Borrego, to turn around the company. His predecessor had struggled to find a solution for the steel unit amid pushback from unions and volatile earnings.