Prague-headquartered energy company EP Corporate Group (EPCG) completed its acquisition of a 20% stake in the steel business of German industrial conglomerate Thyssenkrupp, which the two companies agreed in April.
Thyssenkrupp CEO Miguel Lopez said in a July 31 statement the deal with EPCG is “an important step towards the independence of the steel business and a resilient, cost-efficient and climate-friendly steel production.”
The parties did not disclose financial details of the transaction, but are already discussing the acquisition of a further 30% stake in Thyssenkrupp Steel Europe by EPCG with a view of forming a 50/50 joint venture.
Controlled by Czech billionaire Daniel Kretinsky, EPCG is a private industrial group focused on energy, infrastructure, logistics, media and e-commerce among other sectors with its European assets including gas pipelines and gas storage facilities, power plants and electricity networks. It has been seeking investment opportunities in industries that are exposed to higher energy costs and to potentially contribute to their decarbonization.
Thyssenkrupp is building its first direct iron reduction plant in Duisburg, where it plans to start using hydrogen in 2028-29, with Eur2 billion ($2.16 billion) funding from the German government covering two-thirds of the project’s cos. Thyssenkrupp Steel Europe would not be obliged to offtake energy from EPCG, which would instead act as a backup or fallback option.