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(Sharecast News) - Daniel Kretinsky is to sell his stake in Thyssenkrupp's steel division, it was confirmed on Thursday, ending joint venture plans between the Czech billionaire and Germany industrial giant.
Kretinsky acquired a 20% stake in Thyssenkrupp Steel Europe (TKSE) through his investment vehicle, EP Group, last year, with a view to establishing a 50:50 joint venture.
However, talks between Thyssenkrupp and EP have failed to progress since then and on Thursday it was confirmed Kretinsky would now sell the stake.
The decision paves the way for Thyssenkrupp to secure a potential deal with India's Jindal Steel International, which submitted an indicative bid for all of TKSE for last month.
Thyssenkrupp is understood to be keen to divest the unit, which is vulnerable to shifts in global trade and environmental policies, stiff competition and high energy costs.
EP noted that it "respects Thyssenkrupp's preference to concentrate on discussions with Jindal".
It also noted that Thyssenkrupp would refund EP the purchase price. According to press reports, EP is understood to have paid around 140m for the stake.
Shares in Thyssenkrupp were trading 1% higher as at 1430 BST.
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