Germany’s thyssenkrupp group has confirmed to Kallanish that its strategy is to spin off its divisions, “once they are fit for the capital market.”
The group notes that tk Materials Services in on the right track for such a move and is optimistic that the company will prevail on the capital market. It did not give a timeline for its intention.
The Materials Services division is one of Europe’s largest steel distribution and trading companies, with major activities in North America, which it intends to expand. In the fiscal year through September 2025, it achieved an order intake of €11.4 billion ($13.3 billion).
This comes following media reports that the steelmaker could sell off, list, or divest the division this year. The group is considering changing the business’s legal form to keep control in case of a majority sale, Reuters is reported as suggesting.
A spin-off of tk Materials would come in the wake of the group’s ongoing efforts of separating from its steelmaking unit tk Steel. It is currently in negotiations with Jindal. Thyssenkrupp’s strategy for some time now has been the relative independence for all its divisions, and has achieved this so far for its elevators and defence activities.
