Thyssenkrupp sells 20% of steel business to Czech billionaire
The German industrial group Thyssenkrupp is selling 20% of its steel business to the investment company EP Corporate Group of the Czech billionaire Daniel Krzhetinsky. As stated in a press release from Thyssenkrupp, the parties decided not to disclose the terms of the agreement.
The transaction is expected to be closed in the current financial year, which ends in September. It needs approval from Thyssenkrupp's supervisory board and regulatory authorities.
The parties are discussing the possibility of Krzetinski's company buying out another 30% of Thyssenkrupp's steel business, the press release said. The companies' goal is to form a joint venture in equal shares.
Baader analyst Christian Obst, whose opinion is cited by Market Watch, believes that Thyssenkrupp could receive 350-400 million euros for 20% in the steel business.
Earlier this month, the German industrial group said it intends to cut jobs and production capacity in this division in response to difficult market conditions.