Sale of 20% stake in Thyssenkrupp’s steel business may be canceled – CEO

There is a backup agreement if the company does not agree on a joint venture with the holding of Czech billionaire Kretinsky

The acquisition of 20% of the steel business of the German industrial group Thyssenkrupp by the holding of Czech billionaire Daniel Kretinsky could be canceled if negotiations on deeper cooperation fail. This was stated by Thyssenkrupp CEO Miguel Lopez at the annual shareholders’ meeting, Reuters reports.

According to him, there is a backup agreement to curtail investments if both parties fail to agree on joint ownership (50/50) in the group’s steel business.

In late January this year, a Czech investor confirmed its interest in Thyssenkrupp Steel. As an EPCG spokesperson explained to Rheinische Post, if they reach a common ground with both Thyssenkrupp and trade unions on the future direction, they will be ready to increase their stake.

As a remind, Thyssenkrupp completed the sale of 20% of its steel division to Czech energy company EP Corporate Group (EPCG) in July 2024. The transaction was previously approved by the supervisory board of the German group and all relevant authorities.

Last November, the management of the steel division presented the key points of its reorganization. In particular, it included a reduction in capacity, 5,000 job cuts and 6,000 outsourced jobs.

Earlier, Thyssenkrupp’s CFO Jens Schulte said that the JV would be clear only in 2025. First, a new business plan for the steel division will be drawn up – it is likely to be ready this spring. The document will be the basis for negotiations on increasing the share of Kretinsky’s holding.

Schulte did not rule out the possibility that EPCG would stay with its current stake. However, even if the group completely withdraws from the deal, Thyssenkrupp is ready to continue the spin-off of the steel business, either on its own or by resuming negotiations with other industrial partners.