Thyssenkrupp: Group to be managed with dual voting rights only?
Thyssenkrupp: Group to be managed with dual voting rights only?

11 June 2024 – Managing with dual voting rights does not seem to be good for the thyssenkrupp Group. The share has already lost more than 40% of its value since November 2023. The most recent personnel matter has now had to be decided with a crowbar again, which has created even more thick air in the group. And in Turkey, economic growth is boosting share prices.

Thyssenkrupp: Group can only be managed with dual voting rights?

It should be clear to everyone that the reorganisation of the German steel giant thyssenkrupp Steel Europe (tkSE) is not really easy. Even the possible entry of a Czech financial investor was only feasible with the dual voting rights of the Chairman of the Supervisory Board of thyssenkrupp AG. The change in the management of thyssenkrupp Materials Services (tkMS) now also had to be pushed through with the dual voting right and thus with the crowbar of the tkMS Supervisory Board Chairman. This clearly indicates that the Group is internally divided and could only be managed with dual voting rights.

Thyssenkrupp share price down 40%

The hair-pulling methods do not seem to be going down particularly well in the Group, as various media report. The air is thick within the Group. This has not gone down well with Thyssenkrupp AG shares, as can be clearly seen by the loss in value of more than 40% since November 2023, even for the non-professional.

Capacity reduction at thyssenkrupp just a pretence?

Whether and for how long the announced but not yet implemented capacity reduction of more than 2.5 million tonnes of BOF-BF crude steel capacity at thyssenkrupp is still on the agenda has also become questionable following the EU Safeguard Decision. After all, the European Commission had used the notional capacity reduction at tkSE as one of its main arguments in favour of the extension until 2026.

However, given the growing concerns about massive shortages of hot-rolled coils (HRC) in Europe (e.g. in Italy), this alleged capacity reduction could quickly turn out to be fake news.

Turkey: Growth boosts share prices

Turkey’s leading index, the ISE 100, has risen by 29 per cent in euro terms since the beginning of the year – despite the Turkish lira depreciating by almost seven per cent against the euro. This development was supported by robust economic growth. In the first quarter of the year, gross domestic product in Turkey climbed by 5.7 per cent compared to the same quarter of the previous year, having already risen by four per cent in the previous quarter.

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