Thyssenkrupp increased the value assigned to its steel business on Tuesday by a quarter, just two weeks after failed talks to sell to India's Jindal Steel.

Thyssenkrupp, a German company, has tried to sell Europe's second largest steelmaker, ArcelorMittal, for years. However, differing opinions on the value of ArcelorMittal, as well as pension liabilities, have prevented a sale.

Miguel Lopez, Thyssenkrupp CEO, said that 'valuation differences' were the reason for the failure of the latest talks to sell Thyssenkrupp Europe (TKSE). He said that this was because of an agreement with the unions to cut 11,000 jobs or outsource them, as well as a recent deal to "exit" the HKM Steel joint venture and European safeguard measures designed to protect local industries from cheap Asian imports.

Lopez told journalists that the 'positive developments in the last six month' have led to a 'different valuation of steel. Axel Hamann, the finance chief at Thyssenkrupp, said that as a result of this, TKSE’s book value was raised to $3 billion from 2.4 billion euros in December.

Lopez stated that the goal is still to divest TKSE while retaining a minor stake. Thyssenkrupp, however, remains open to any offers. Thyssenkrupp has been attempting to consolidate its holdings by divesting its divisions. This strategy has already helped boost its shares and allowed it to list its marine and hydrogen businesses.

Thyssenkrupp has also reduced its sales forecast for 2026 as a result of the sluggish economic activity in Europe. It expects revenue to drop by as much as 3%, or at worst remain flat. Previously it had expected a range between minus 2% and plus 1%.

According to a LSEG survey, analysts expect that sales will fall?by 1%.

The LSEG poll predicted that Thyssenkrupp would miss the 231 million euro target for its second quarter operating profit by two thirds.

(source: Reuters)