Thyssenkrupp intends to offload additional business entities for sale - Thyssenkrupp Planning to Sell More Business Units, According to Media Reports
Thyssenkrupp Set for Major Overhaul: Selling Steel Division, Automotive Supply Units, and More
Thyssenkrupp, the German industrial conglomerate, is planning a significant restructuring that involves selling or spinning off key divisions, including its traditional steel division and parts of the automotive supply unit. The aim is to transform the company into a holding firm with ventures operating independently, thereby enhancing agility, investment opportunities, and transparency.
According to reports, Thyssenkrupp intends to halt its steel trading operations and sell its traditional steel division. The division, employing around 16,000 people and generating annual revenue of €12.1 billion, will likely be listed on the stock market. Meanwhile, Czech billionaire Daniel Kretinsky, who currently holds a 20% stake in the steel business, is planning to increase his hold to 50%, hinting at Thyssenkrupp reducing its direct control over this core unit.
Furthermore, parts of the automotive supply division are earmarked for closure or sale, with only a minimal section potentially remaining. This transformation is part of Thyssenkrupp's broader strategy to sell minority stakes in its automotive, materials trading, and green technologies divisions over the coming years, while retaining controlling stakes.
In addition to this, Thyssenkrupp is planning to float the submarine-making unit, Material Services, and Automation Technology divisions separately in the capital markets. The company will eventually morph into a financial holding firm and cease steel production, resulting in staff reductions at the headquarters and a significant downsizing of administrative staff.
The supervisory board is set to decide on extending CEO Miguel Lopez's contract on September 16, though no public confirmation has been made about the extension. Lopez has publicly voiced his support for the overhaul, emphasizing the future independence and entrepreneurial flexibility of the segments.
The restructuring plans are reportedly not expected to face major resistance from the supervisory board. Thyssenkrupp has declined to comment on the potential contract extension for Lopez.
Source:
- Business Insider Germany – Restructuring plans
- Frankfurter Allgemeine Zeitung – CEO contract extension rumors
- Spiegel Online – Details on the restructuring measures
- Bild am Sonntag – Manager comments on automotive supply unit
- Manager Magazin – Background on the steel division's potential sale to Kretinsky
Thyssenkrupp's restructuring efforts revolve around transforming its conglomerate model into a holding firm with independently operated businesses. The shift aims to create agile, investor-friendly businesses, with control gradually moving away from the historic group. This transition will lead to job cuts and a significant reduction in administrative staff. The CEO's contract extension remains a topic of speculation and has not been publicly confirmed.
- Thyssenkrupp's community policy, as part of its restructuring, includes the intention to sell its traditional steel division, which employs around 16,000 people, to enhance agility and investment opportunities.
- The employment policy within Thyssenkrupp's business sectors, including manufacturing, industry, finance, and automotive supply, is undergoing a major shift towards independence. This change is expected to lead to job cuts and a significant reduction in administrative staff, as the company transforms into a financial holding firm.
