Worthington Steel and Klöckner confirm takeover talks
Distributor of Klöckner steel & Co SE announced that it is in talks with the American company Worthington Steel about a voluntary public takeover offer for Klöckner.
In a special statement over the weekend, the German club Klöckner said that it confirms the rumors in this regard. Worthington Steel has made such progress that it is at the stage of conducting a comprehensive audit, says Kloeckner.
In a subsequent statement, Worthington Steel confirms the negotiations, noting that no investment decisions have been made. The Columbus, Ohio-based refining company says negotiations will not necessarily lead to a deal, and that it will not comment further.
This news is surprising because Kloeckner has made numerous acquisitions and spin-offs over the years, but he has never been the target of a takeover. Klöckner is Germany's only stock exchange-listed steel distributor with annual revenue of over 6 billion euros ($7 billion), which is achieved through operations in Germany, Switzerland and the United States. Over the years, the volume of transshipment has decreased from about 6 million tons per year until 2020 to less than 5 million tons per year currently.
This may be partly due to economic fluctuations, but is largely a consequence of the group's efforts to transition from net tonnage and commodities to processing and value-added services. In recent years, the company has carried out various investments, divestments and acquisitions for this purpose, especially in the USA (see Kallanish passim).
This, of course, fits perfectly with Worthington's activities in the field of carbon sheet steel processing, electrical steel lamination, and customized welding solutions. The company employs about 6,000 people and specializes in high-value-added technologies, including galvanizing, etching, profiled billet, special cooling, weight reduction, and electric lamination. Worthington Steel operates 37 plants in seven states and ten countries.
Author: Christian Kel Germany
Kallanish.com