The German conglomerate thyssenkrupp AG has decided to divest additional stakes in various divisions. This will also affect thyssenkrupp Materials Services, the steel and other materials distribution and trading division, Kallanish notes.
The group's plan, announced on Monday, is to gradually separate all of its business segments and open them up to outside investments. The company has already taken this step by agreeing to turn thyssenkrupp Steel Europe into a 50-50 joint venture with the Czech energy company EP Corporate Group (EPCG).
"In the coming years, the segments of materials manufacturing services and automotive technologies will also be expanded. Be prepared for changes in the capital markets and become independent," thyssenkrupp wrote in a statement.
Over the weekend, media reports have already appeared that tk Materials Services will be placed on the stock market, citing sources familiar with the plans. In this case, Germany's largest steel concerns are located abroad, another of which is Klöckner & Co, – will become listed companies on the stock exchange
This drastic step did not come as a surprise, although thyssenkrupp chief executive Miguel Lopez earlier this month described the company's provision of materials as its main activity. Last year, the group sold 20% of tk Steel's steel division to EPCG with the intention of eventually turning it into a 50-50 joint venture.
As for its other divisions, thyssenkrupp says it is committed to maintaining controlling stakes after they are established and is ready to enter the capital market. This would essentially turn thyssenkrupp into a holding company combining various stakes in independent companies.
The statement does not mention any potential layoffs. Media reports say tk plans to cut 500 of the 1,000 jobs at its headquarters in Essen, as well as another 1,000 people in various administrative positions. Politicians from the government of North Rhine-Westphalia called these plans "dramatic".
Christian Kel Germany
kallanish.com
