The news of US-based steel processor Worthington Steel being in talks with Kloeckner for a “voluntary public takeover” broke in two successive press releases on Saturday December 6, a development termed “crazy” by a market watcher.
Both companies released statements on Saturday to confirm they were in negotiations, with the German metals firm noting that Worthington Steel is conducting a due diligence review with the aim of potentially launching a voluntary public takeover offer for its shares.
“It is currently uncertain whether, or under which conditions, a potential voluntary public takeover offer will be pursued,” Kloeckner said in its statement.
Worthington Steel said in its statement that no investment decision had been made, and that the talks might not result in a deal.
Fastmarkets reached out to Worthington Steel on Monday December 8 for additional details, and a company spokesperson responded that, “at this time, we are still in negotiations and we will not be making any additional comments beyond what we shared on Saturday.”
If successful, the takeover will not be Worthington Steel’s first foray into international investments, especially against the backdrop of the 50% tariff on steel imports that US President Donald Trump implemented in 2025.
Earlier this year, Worthington Steel completed the acquisition of a 52% stake in Italy-based Sitem Group, which makes electric motor laminations and related products for automotive and industrial applications across six facilities in Europe.
Worthington Steel has publicly stated its aim of investing in value-added and specialty steel products in niche markets due to the higher margins the segments provide.
Another example is Worthington Steel expanding its Tempel Steel facility in Apodaca, Mexico, to capture a larger chunk of the growing North American laminated electrical steel market.
Worthington Steel reported net sales of $872.9 million in the third quarter of 2025, an increase of 5% compared with $834 million in the previous year’s corresponding quarter, while quarterly earnings rose by 11.29% to $48.3 million.
Kloeckner is pursuing its own multiyear growth strategy, dubbed “Leveraging Strengths – Step up 2030,” and is focusing on higher value-added segments and its service center business.
As part of the plan, Kloeckner agreed to sell eight distribution sites of its US subsidiary, Kloeckner Metals Corporation (KMC).
Georgia-based KMC sold seven US-based seven service centers to Canadian processor and distributor Russel Metals for approximately $119 million, in a deal announced in late September this year.
KMC sold an eighth US distribution site to Service Steel Warehouse, according to Kloeckner’s financial report for the first nine months of 2025.
The Kloeckner Metals Americas segment generated earnings before interest, taxes, depreciation, and amortization (EBITDA) of €158 million ($183.87 million) in the first nine months of 2025, compared with €112 million in the prior-year period.
The positive trend in Kloeckner’s Americas division comes despite the negative impact of “increased economic uncertainty over the course of the year,” the German company said in its report.
Kloeckner & Co is also focused on expanding its capabilities in the defense and infrastructure sector in Germany to take advantage of increased defense spending across Europe, according to the report.
