Background and Motivation
- Comprehensive Restructuring: Thyssenkrupp is undergoing a thorough structural transformation aimed at increasing the efficiency and profitability of the group. The steel division has incurred significant losses in the past, increasing pressure on the group to divest unprofitable business segments.
- Financial Challenges: The steel division has suffered considerable losses in recent quarters. In the second quarter of 2024/25, Thyssenkrupp reported an adjusted operating result of only 19 million euros, which is 90 percent less than the previous year. The steel division contributed to the loss zone with a deficit of 23 million euros.
- Strategic Realignment: Thyssenkrupp plans to consolidate its industrial sectors into a financial holding to facilitate further sales of business segments and strengthen the corporate headquarters.
Possible Impacts
- Market Position and Competition: The sale of the majority stake in the steel business could weaken Thyssenkrupp’s market position in the steel sector, as the company would have less control over this area.
- Steel Prices: This decision could affect steel prices as the market structure may change.
- Employment Situation: The sale or restructuring of the steel division could have significant impacts on employment.
Current Developments
- Sale to Daniel Křetínský: One fifth of Thyssenkrupp’s traditional steel business has already been sold to Czech billionaire Daniel Křetínský. Negotiations for the sale of additional shares are underway.
- Closure of Plants: There are plans to close certain steel plants earlier than originally scheduled.
Overall, the potential sale of the majority stake in Thyssenkrupp’s steel business could have far-reaching consequences for the company, the industry, and investors.