CFO: “Ideas were too far apart”
The German industrial group Thyssenkrupp does not want to sell its steel subsidiary to its British competitor Liberty Steel. The negotiations had ended, Thyssenkrupp announced on Wednesday evening. “We opened the door for negotiations, but in the end our ideas about the company value and structure of the transaction were far apart. We have therefore decided to end the talks,” said CFO Klaus Keysberg.
Thyssenkrupp will now continue to develop the steel business on its own. In mid-October, Liberty submitted a non-binding offer for Thyssenkrupp Steel Europe. Thyssenkrupp had announced that it would also examine a spin-off and continued operation on its own. Together, the two steel mills would have forged the second largest industry giant in Europe behind ArcelorMittal Europe.
For years, the industry has suffered from overcapacity, cheap imports from the Far East and increasingly stringent climate protection requirements. Heavy industry came under even greater pressure due to the corona crisis. However, the situation has recovered somewhat in recent months. Thyssenkrupp Steel Europe benefited from the increased demand, especially from the automotive industry and higher steel prices.
