Steelmaker thyssenkrupp is engaging in talks with steel distributor, processor and trader Klöckner & Co. for a possible merger, according to the German newspaper Handelblatt.
“The project is very concrete and has good chances to be implemented,” the German newspaper reported, citing people familiar with the matter.
The proposal that thyssenkrupp’s Materials Services division and Klöckner & Co could be interested in one another came up in the course of the unsuccessful merger with Tata when in June the European Commission blocked the merger with veto.
After the veto, thyssenkrupp planned a radical reorganization, including the spin-off of the elevator division and the re-organization of the steel unit. In an August conference call the company said that 2,000 jobs in the steel division will be cut and that it will announce future plans for steel before the end of the calendar year.
— Annalisa Villa