Worthington Steel is in talks to acquire Germany’s Klöckner & Co

German steel distributor Klöckner & Co has confirmed that it is in talks with US-based Worthington Steel regarding a possible takeover of the company. The Düsseldorf-based company announced this as part of its mandatory disclosure, according to MarketScreener.

The American side is currently conducting a financial review of the German company’s activities. At the same time, the parties note that a final decision on submitting an offer to acquire all shares has not yet been made, and the terms of a potential deal remain uncertain.

Since the end of 2024, Klockner’s share price has risen by just over a third, although this has only partially offset the losses of previous years. For comparison, from its multi-year high in March 2022 at €13.5, the company’s market value has more than halved and is currently estimated at around €600 million.

Worthington Steel’s market capitalization, according to the latest data, is about $1.8 billion, or almost €1.6 billion, which highlights the significant difference in the scale of the companies. Klöckner & Co was founded in Duisburg in 1906 and currently has about 6,600 employees.

At the end of 2024, the company’s revenue amounted to €6.6 billion, which is slightly less than a year earlier, despite an increase in physical sales volumes due to lower steel prices. Operating profit also declined, but for 2025, the company expects moderate growth in sales and revenue, as well as a significant improvement in operating performance.

In September, it was announced that Klöckner & Co was selling eight distribution facilities in the US. Seven of them, located in Texas, North Carolina, Iowa, and Georgia, will be acquired by Canada’s Russel Metals for nearly $119 million. The deal will result in a balance sheet profit for Kloeckner of more than €20 million ($23 million). Klöckner’s eighth facility is located in Amarillo, Texas. It will be purchased by the American company Service Steel Warehouse.