Salzgitter rejects takeover bid and maintains independence

The company will remain independent and continue its transformation towards green steel

Metallurgical company Salzgitter AG has decided to terminate negotiations with the consortium of GP Günter Papenburg AG and TSR Recycling GmbH & Co. KG on a possible takeover. According to the company, the parties had significantly different perceptions of the current and future value of the assets, Salzgitter said in a press release.

“«Salzgitter AG will remain an independent company. With the combination of decades of expertise, technological and innovative strength, and entrepreneurial responsibility, we will continue to drive our transformation forward. We laid important groundwork for this last year. With our expanded P28 performance program, we have launched additional measures to strengthen our competitiveness and secure long-term prospects for our employees,” said CEO Gunnar Grebler.

A key element of the transformation is the SALCOS® program, which aims to switch to hydrogen technology and reduce CO2 emissions to near-zero by 2033. The first phase of the project involves an investment of €2.3 billion. Thanks to its modular approach, Salzgitter plans to respond flexibly to market conditions.

The company has also expanded its efficiency improvement program: instead of the planned €250 million, P28 is expected to save €500 million, of which €130 million has already been realized.

“The aim of all the activities mentioned is to ensure that Salzgitter AG is as well positioned as possible in the competition, to continue the transformation that has been successfully initiated in a targeted manner, and to generate long-term value for shareholders, customers, and employees,” added Grebler.

Salzgitter also sees prospects in the development of the defense sector and the construction of infrastructure for the transportation of hydrogen, natural gas and CO2. The company expects government policies in the areas of climate, infrastructure, and defense to have a positive impact on the industry in the coming years.

As GMK Center reported earlier, in February 2025, Salzgitter began construction of one of Europe’s largest green hydrogen plants. Starting in 2026, the Salzgitter facility is expected to produce about 9,000 tons of hydrogen annually, which will be a key milestone in the implementation of the SALCOS® program to reduce CO2 emissions in steel production.