Global steelmaker Liberty Steel Group has made a non-binding indicative offer (NBIO) as part of a thyssenkrupp-led process to acquire the steel activities of thyssenkrupp.

Liberty argues that with both transformation experience and an entrepreneurial approach, a possible combination of LIBERTY Steel and thyssenkrupp Steel would create a strong group well positioned to tackle the challenges faced by the European steel industry and accelerate the transformation to GREENSTEEL.

The company believes that from an economic perspective, there is potential for a compelling industrial concept given that the businesses are complementary with respect to assets, product lines, customers, and geographic footprint.

Such an acquisition would also be right economically, socially and environmentally, according to Liberty.

Socially, LIBERTY claims that it stands for a long-term commitment to the industry and jobs, reflecting its own 'family-owned' business values. "We are convinced that change needs to happen in partnership with employees," the company said, adding that it has repeatedly proven to turn around businesses in a way that is loyal to local communities and saves jobs.

Environmentally, the company claims leadership in sustainability, with a mission to become carbon neutral by 2030. However, to transform a whole industry, Liberty believes that a European approach is required. "A joint entity would be well positioned to create the sustainable GREENSTEEL industry leader in Europe," the company said. "We would thereby contribute to the long-term recovery of the sector and the EU’s green deal".

The NBIO is supported by a number of financial institutions, and if given the opportunity to proceed , LIBERTY claims it is open to intensify the dialogue with thyssenkrupp and engage in further due diligence to present a potential binding offer.

Discussions with thyssenkrupp have been conducted on a non-exclusive basis. There is no certainty that the discussions will lead to any agreement or transaction.

The company further claims that the terms of a potential binding offer could deviate from the current non-binding offer. "Should the discussions materialize in any relevant agreement between the companies, LIBERTY Steel will publish further information on the matter in due course," it said.

• LIBERTY Steel is a global steel and mining business with annual revenues of about US$15 bn/ € 13 bn and 30,000 employees in more than 200 locations on four continents.