Thyssenkrupp, Germany’s largest steel producer, will sell a 20 percent stake in its steel company to Czech billionaire Daniel Křetínský’s investment group EP Corporate Group (EPCG). The value of the transaction was not disclosed. The companies are also in talks to acquire another 30 percent and aim to create a joint venture in which each party would have a half stake.
Thyssenkrupp announced this month that it would cut jobs and reduce capacity at its Duisburg smelters. The company is trying to rebuild its steel company, whose roots go back more than 200 years. Demand is weakening and cheaper steel from Asia is entering the market. High energy prices and EU climate policy also contribute to the problems.
“Thyssenkrupp is facing serious difficulties due to the green agenda and expensive energy, but Křetínský is making record profits,” Trinity Bank economist Lukáš Kovanda said regarding the announced transaction. “His energy company had a higher profit last year than any domestic company in history, 184 billion crowns. The historical record was achieved by EP Corporate Group despite the drop in energy prices on European stock exchanges, which occurred compared to 2022,” explained Kovanda.
We cling too much to life, health and medicine is not just science, says Pavel Kolář
Echo24, 25 April 2024
PODCAST ECHO MEETING
According to Křetínský, the current acquisition is the first step towards the upcoming partnership of the two groups. “EPCG has successfully navigated the dynamic market in the energy sector. At the same time, it remained financially strong, continues to grow and is a reliable provider of energy and services to clients. Based on this, we are convinced that the joint venture concept will create a stronger position for Thyssenkrupp Steel at a time when the entire steel sector in Europe will undergo a similar transformation as the energy sector,” said ČTK through its spokesman Křetínský.
The deal is expected to be completed this financial year. However, the transaction still needs to be approved by the competent authorities and the supervisory board of the German company.
Biden’s confusing and contradictory foreign policy
Ondřej Šmigol, April 24, 2024
AMERICAN FOREIGN POLICY
According to Kovanda, the core of the current problems of Thyssenkrupp and the entire German industry is the green agenda. “Especially as a result of the implementation of an ambitious green agenda, energy prices in Germany significantly exceed prices in Asia or, for example, the United States, which makes German – and more generally European – industry much less competitive,” he added.
The EPCG group includes Energetický a průmyslový holding (EPH), media group Czech Media Invest (CMI) and EC Investments. In EPCG, Křetínský has 89.3 percent of the shares, the remaining 10.7 percent is held by the group of EPH managers.
How Trump saved Ukraine
Ondrej Šmigol
COMMENT
