BERLIN (Reuters) -Thyssenkrupp said on Friday that it will sell a 20% stake in its steel business to EP Corporate Group (EPCG), the investment vehicle of Czech billionaire Daniel Kretinsky.

According to Thyssenkrupp, the parties are in talks about the acquisition of a further 30%, with the aim for an equal 50-50 joint venture.

The deal is due to close in this financial year.

The German industrial conglomerate recently announced it will cut jobs and reduce capacity at its main Duisburg site, which was a sticking point in talks with Kretinsky and has sparked a critical reaction from the German government.

Thyssenkrupp is revamping its steel business, whose roots extend back more than 200 years, amid weakening demand and brutal competition from cheaper Asian rivals.

(Writing by Andrey SychevEditing by Miranda Murray)