German conglomerate thyssenkrupp AG has decided to divest further shareholdings in various divisions. This will also affect thyssenkrupp Materials Services, the division for distribution and trading of steel and other materials, Kallanish notes.
The group’s plan, announced on Monday, is to gradually separate all its business segments and open them up for third-party investment. It has already taken this step by agreeing to turn thyssenkrupp Steel Europe into a 50-50 joint venture with Czech energy company EP Corporate Group (EPCG).
“In the coming years, the Materials Services and Automotive Technology segments are also to be prepared for the capital markets and become independent,” thyssenkrupp writes in an announcement.
Media reports over the weekend already suggested that tk Materials Services would be floated on the stock market, citing sources familiar with the plans. In that case, Germany’s largest steel distribution groups with international locations – the other being Klöckner & Co – would become publicly-listed companies.
This sweeping clean-up move does not come unexpectedly, although thyssenkrupp chief executive Miguel López called Materials Services a core activity just earlier this month. The group divested last year 20% in steelmaking division tk Steel to EPCG, with the intention of ultimately making it a 50-50 joint venture.
Regarding its other divisions, thyssenkrupp says it aims to retain controlling interests once they have been made ready for the capital market. This would basically make thyssenkrupp a holding of diverse stakes in independent companies.
The statement does not mention any potential layoffs. Media reports say that tk plans to cut 500 of 1,000 jobs at its Essen headquarters, plus 1,000 more in diverse administration roles. Policymakers from the North Rhine Westphalia state government were quoted as calling the plans “dramatic”.
Christian Koehl Germany
