On Monday, May 18, the steel division of the German industrial conglomerate Thyssenkrupp is expected to deepen discussions with several industry counterparts with a view to a merger, according to a source from Reuters. They would take place as part of a reorganization plan for Thyssenkrupp Steel Europe, the leading German steelmaker, which reported a loss of 372 million euros in the first half of its fiscal year and would likely include site closings or sales.
Indian, Swedish and Chinese industrialists in the ranks?
Thyssenkrupp, under pressure from activist funds, has made several strategic reversals in recent times, notably renouncing a joint venture in the steel industry with the Indian Tata Steel a year ago. But the group continues to praise the merits of consolidation in the steel sector. According to several sources interviewed by Reuters, the German group has never broken contact with Tata Steel and continues its discussions.
The financial daily Handelsblatt reports that Thyssenkrupp talks to the Swedish SSAB and the Chinese company Baoshan Iron & Steel, both interested in a majority share in the steel division of the conglomerate.
No comments could be obtained from these four companies.
Wednesday, May 13, Reuters reported from a source familiar with the matter that Thyssenkrupp was studying several strategy scenarios for its military shipbuilding activities, including that of a rapprochement with the Italian Fincantieri and that of the constitution of a national “champion” with German competitors.
with Reuters (Christoph Steitz and Tom Kaeckenhoff, French version Jean-Stéphane Brosse)