Liberty Steel Group, part of GFG Alliance Ltd., said last Friday that it has made a non-binding indicative offer to acquire Thyssenkrupp AG's steel operations.

The U.K.-based company said a possible combination between the two businesses would create a group that was well positioned to tackle the challenges faced by the European steel industry. The businesses are complementary with respect to assets, product lines, customers, and geographic footprint, Liberty Steel said.

Liberty Steel said its nonbinding indicative offer, which is supported by a number of financial institutions, is subject to certain assumptions about the business. The company said it is open to intensify talks with Thyssenkrupp and would like to engage in further due diligence to present a potential binding offer.

There is no certainty that the discussions will lead to any agreement, Liberty Steel said.