The aim is a joint venture in which the two partners each hold 50 percent of the shares, both sides announced on Friday. In a first step, Kretinsky’s company EPCG acquired 20 percent of the shares.
“In addition, the parties are discussing the acquisition of a further 30 percent of the shares in the steel business by EPCG.” Both parties agreed not to disclose the terms of the transaction.
Baader analysts put the possible revenue for the package at 350 to 400 million euros. Kretinsky’s entry was well received on the stock market. Thyssenkrupp shares rose by around ten percent in the first few minutes of trading.
The largest German steel maker recently announced that it wanted to reduce capacity in the steel division and cut jobs. Heavy industry also plays a key role in the energy transition in Germany. Thyssenkrupp Steel Europe employs around 27,000 people, most of them at Europe’s largest steel site in Duisburg.
Economic independence and entrepreneurial success
“Our goal is a future concept that leads to economic independence and entrepreneurial success for Thyssenkrupp Steel, meets the requirements of climate protection, avoids redundancies for operational reasons and finds broad acceptance,” said Thyssenkrupp boss Miguel Lopez. “The agreement to acquire the 20 percent stake in Thyssenkrupp Steel Europe is a first step on the planned path towards a broader strategic partnership,” added Kretinsky. The entry of EPCG combines “the leading materials know-how of Thyssenkrupp Steel Europe with the energy expertise of EPCG”. The transaction should be completed in the current 2023/24 financial year (at the end of September).
As a strategic partner, EPCG will ensure that the joint venture is sufficiently supplied with energy, hydrogen, green electricity and other energy raw materials, it said. EPCG has successfully mastered the recent dynamic market conditions in the energy sector and is financially strong, emphasized Kretinsky. The company is a reliable provider of energy and services. “On this basis, we are convinced that the joint venture concept with Thyssenkrupp Steel will ensure a more resilient position.”
Kretinsky has numerous investments in various industries
Kretinsky grew up in the energy business and remains active there. He currently also has numerous investments in various industries in Europe – from trading companies such as Metro to media groups and logistics. As a strategic partner of Thyssenkrupp Steel, EPCG should now “contribute its expertise to ensure a sufficient supply of energy in the form of hydrogen, green electricity and the provision of other energy raw materials.”
Heavy industry, with industry giants such as ArcelorMittal and Salzgitter, has been struggling for years with high energy and raw material costs and competition from the Far East. In addition, the steel industry has to spend billions on a climate-friendly restructuring of production. Thyssenkrupp Steel Europe is also struggling with weak demand from the automotive industry, which is its most important customer. EPGC is initially taking a stake of 20 percent in order to “actively participate in the design and realignment of Thyssenkrupp Steel.” Kretinsky wants to have a say in the upcoming renovation.
The powerful employee representatives at Thyssenkrupp should also note this with interest. IG Metall recently called for a strict exclusion of operational dismissals beyond the collective agreement valid until March 2026. In principle, they were not closed to the entry of an investor, including Kretinsky – but they had to bring money with them.
