Thyssenkrupp to Sell 20% Stake in Steel Business to Kretinsky’s EP
Thyssenkrupp said its discussing the potential acquisition by EP of a further 30% stake in the steel business with the aim of forming an equally owned joint venture
Thyssenkrupp TKA 8.73%increase; green up pointing triangle agreed to sell a 20% stake in its steel business to Czech billionaire Daniel Kretinsky’s EP Corporate Group for an undisclosed sum, settling on a partial divestment of the unit after yearslong efforts to offload it.
The German industrial group said Friday that the two companies are discussing the potential acquisition by EP of a further 30% stake in the steel business with the aim of forming an equally owned joint venture.
The deal looks set to open a new chapter for Thyssenkrupp’s steel business. For years, the company had been seeking an exit from steelmaking, which dragged its financial results of late.
An attempt by Thyssenkrupp to sell the business to Britain-based Liberty Steel Group fell through in 2021 after the parties failed to reach an agreement. A prior deal with India’s Tata Steel was blocked by European Union competition authorities.
For the year ended Sept. 30, the company booked a write-down of 2.11 billion euros ($2.26 billion) that it said it reflected mainly worsening conditions at its European steel operations.
Thyssenkrupp earlier this month said it would cut jobs and scale back productions at its steel business in response to market challenges, with weak demand, high energy costs and rising competition from Asia hurting the business.