Banking & Finance UAE company backs out of German steel producer deal By Reuters July 28, 2023 Reuters/Umit Bektas Essar will set up a 4 million metric tonnes per year steel plant at Ras Al-Khair in Saudi Arabia UAE-based Emirates Steel Arkan has walked away from a potential investment in Thyssenkrupp’s steel business, a source familiar with the matter told Reuters. The state-backed firm stopped actively pursuing a deal due to concerns over pension liabilities and other complexities of the business, the source said. Emirates Steel was considering buying a stake in the Thyssenkrupp unit, which has seen interest from other bidders including India’s JSW Steel Ltd also wane, the source added. UAE sets up centre to decarbonise shipping sector Foreign investment in UAE surges to record $23bn UAE pledges $54bn for renewable energy A spokesperson for Thyssenkrupp declined to comment. Bloomberg was first to report the news on Thursday. The German conglomerate is exploring various options for its steel division, which management sees as a drag on performance due to its cyclical nature. Previous efforts to merge the division with a peer, sell it to a rival, list it or spin it off have all failed. In February Emirates Steel Arkan, formed after the merger of Emirates Steel and Arkan Building Materials, in 2021, reported a Q4 2022 net profit of AED125 million ($34 million), while revenue reached AED2.3 billion. The company made a net profit of AED508.45 million for 2022. In August 2022, Emirates Steel Arkan was considering expanding into new markets in Asia and Africa, CEO Saeed Ghumran Al Remeithi told state-run WAM news agency.