The Strategist

Czech billionaire buys 20 percent of ThyssenKrupp's steel business

04/30/2024 - 05:12

The Czech billionaire Daniel Křetinsky, owner of the energy conglomerate EP Corporate Group (EPCG), has agreed to purchase a 20 percent share in ThyssenKrupp's steel division. The firms intend to expand EPCG's interest in ThyssenKrupp Steel to 50% as part of the strategic alliance in order to create a joint venture with equal shares of the participants.

The agreement's financial details are not made public. Christian Obst, a Baader analyst, has estimated that ThyssenKrupp might obtain €350–400 million for 20% of its steel segment shares. The parties aim to finalize the agreement by September 30, which is the end of ThyssenKrupp's current fiscal year.

ThyssenKrupp is the biggest steel manufacturer in Germany. However, when the world economy has slowed down, higher energy costs, declining demand, and more competition from Asian manufacturers have all contributed to the company's steel division's consistent losses in recent years.

The German holding company intends to switch production to less expensive renewable energy sources through a strategic relationship with EPCG. EPCG is an expert in this field and owns 22 GW worth of these kinds of power plants throughout Europe.