Will the sale of thyssenkrupp's steel division fail again?
Will the sale of thyssenkrupp’s steel division fail again?

22 May 2024 – Will the potential sale of thyssenkrupp’s steel division fail again due to the billions in pension provisions weighing on the Group? There are many indications that this is the case and it is not the first time a tkSE CEO has come under massive pressure. And Indonesian nickel ore prices remain stable.

Will the sale of thyssenkrupp’s steel division fail again?

Once again, thyssenkrupp wants to sell its ailing steel division with its billions in pension provisions to an investor. The last CEO, Martina Merz, failed to sell thyssenkrupp Steel Europe to a financial investor in March 2023 and subsequently threw in the towel. The offer – the obligatory euro – had not been enough at the time.

Possible new investor, old problems

Now a new investor is considering a stake in thyssenkrupp. The Czech company EPCG could take over up to 50%. Although the offer from the Czech Republic appears to be higher than the ‘obligatory euro’, it is apparently not interested in acquiring the pension obligations.

Board without a real concept?

The new CEO of the German steel giant apparently, albeit unsurprisingly, does not yet have a solution to the multi-billion euro problem up his sleeve. After all, Duisburg would also like to get rid of its pension obligations.

Will steel shack remain unsaleable?

There are many indications that thyssenkrupp Steel Europe will continue to be a slow seller and that the pensions could once again become a deal breaker and the ailing steel manufacturer will be kept alive artificially at the taxpayer’s expense. Because let’s be honest: German politicians certainly don’t want to have the almost 3 billion euros in pension obligations written into their clammy state coffers.

Indonesian nickel ore prices remain stable

Indonesian nickel ore prices remain stable. According to media reports, Indonesian smelters are continuing to stock up on raw materials from the Philippines due to the scarce availability of nickel ore. Even though there are reports that the granting of mining licences in Indonesia is progressing (albeit very slowly), the availability of Indonesian ore is likely to remain a challenge.

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