The stock market reacts enthusiastically
Billionaire wants to take over half of Thyssen’s steel division
September 29, 2023, 8:10 a.m
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According to insiders, the industrial group Thyssenkrupp is intensively negotiating a partial sale of its steel division to the Czech billionaire Daniel Kretinsky. The talks are already advanced. The rumors are causing excitement on the stock market.
According to a press report, Czech billionaire Daniel Kretinsky could soon join the steel division of the industrial group Thyssenkrupp. Representatives of the industrial group held in-depth discussions with it, the “Handelsblatt” reported. According to the current status, Kretinsky should receive a 50 percent share in the division and Thyssenkrupp AG should remain involved in the same amount. But Kretinsky is not seeking control, one of the insiders told the Reuters news agency. Thyssenkrupp and a spokesman for Kretinsky declined to comment.
The report caused enthusiasm on the stock market. Thyssenkrupp shares jumped sharply shortly before the close of trading on Thursday evening and ended trading six and a half percent higher. According to insiders, Kretinsky has been in discussions with Thyssenkrupp for a long time about joining the steel subsidiary. The new Thyssenkrupp boss Miguel Lopez is pushing the negotiations forward, it was said. His predecessor, Martina Merz, had already put the steel division with around 27,000 employees on the table.
The report continued that the management of Thyssenkrupp expects the Czech entrepreneur’s participation to provide access to cheap electricity. Kretinsky controls the East German lignite-fired power companies Mibrag and Leag and is also planning to build solar and wind power parks whose output could be used to supply the steelworks with “green” electricity.
According to previous considerations, the group and Kretinsky’s company EP Holding would merge the steel business. “This gives us certainty that Thyssenkrupp Steel will exist in the long term,” the “Handelsblatt” quotes from those involved. Should financial bottlenecks arise, two owners would be available to inject additional capital in the future.
The employee representatives had also shown themselves open to discussions with Kretinsky and his holding company EPH. “We have nothing against billionaires. If they invest the money in steel, we’ll be happy,” said group works council head Tekin Nasikkol at the beginning of the month. So far nothing has been heard from this site. Basically, people are open to discussions. “We can definitely imagine staying in the group.”