European conglomerate Thyssenkrupp is in intensive talks with Naveen Jindal-promoted Jindal Steel International over the Indian group’s interest in its steel business, the German conglomerate’s CEO said, calling it a “good cooperation” but signalling that the discussions could take a while.

Jindal Steel International last month made an indicative bid for Thyssenkrupp Steel Europe (TKSE), Europe’s second-largest steelmaker, to strengthen its foothold on the continent, in what could result in a sale of the business that has long been sought by German management.

“Talks are ongoing — very intensively,” CEO Miguel Lopez told Reuters at the Frankfurt stock exchange, where he was attending the stock market debut of the TKMS naval vessels unit, which was spun off from Thyssenkrupp.

“We’ll see what outcome we’ll have over the next few months,” he said, adding it was Thyssenkrupp’s goal to restructure steel and thoroughly assess the offer by Jindal, which brings with it investment commitments for a major green steel site.

The sale of the steel unit remains the most critical part of Lopez’s restructuring agenda for the storied German firm, as several efforts to divest the business have failed in recent years - mostly because of substantial pension liabilities tied to it.

As a result of the Jindal offer, Thyssenkrupp and Czech billionaire Daniel Kretinsky ended long-standing talks over a 50:50 steel joint venture.

In the past, Tata Steel, which has close to 10 million tonne capacity (installed and upcoming) spread across Port Talbot in the UK and Ijmuiden in Netherlands, wanted to merge the European business with TKSE. However, the plan ran into a regulatory huddle leading to parties walking away from the deal.

Unlike Tata, which has a legacy European business, Naveen Jindal’s steel manufacturing operations are firmly entrenched in India, especially in the eastern state of Odisha’s Angul. A potential deal with TKSE, Germany’s largest flat steel maker with 11 tonne capacity, can give Jindal access to the European market and Thyssen’s technology.

A challenge for the new owner will also be transforming the business to a less carbon intensive operation. Steel production at Thyssenkrupp is planned to be carbon-neutral by 2045.

As an initial target for 2030, Thyssenkrupp Steel is aiming to reduce emissions from its own production and processes and from the purchase of energy by more than 30 percent versus the base year 2018, according to the company’s website.