Emirates Steel Arkan has reportedly withdrawn from its potential investment in Thyssenkrupp AG’s steel arm, delivering another setback to the German conglomerate’s plans to divest the struggling operations, as per a Bloomberg report.
According to sources familiar with the matter, concerns over pension liabilities and other complexities of the business led to Emirates Steel’s decision to stop actively pursuing the deal. Previously, Emirates Steel Arkan was considered the leading contender to acquire a stake in Thyssenkrupp’s steel unit.
A potential deal with Emirates Steel could have supported Thyssenkrupp’s aspirations to shift towards low-carbon steel production. The two companies had previously explored the possibility of Emirates Steel Arkan producing energy-intensive products in the United Arab Emirates using renewable energy and then shipping them to Germany for further processing into finished products for the automotive industry.
