Thyssenkrupp Announced Renewed Efforts to Divest Steel Division

SEATTLE (Scrap Monster): Thyssenkrupp announced that it has resumed efforts to divest its steel division. As part of the plan, the company has started exploring options, in partnership with Goldman Sachs group. The German business group had earlier decided to put the idea of spinning off its steel business unit following several failed attempts to sell or find a merger partner.

The company noted that it may require to invest billions over the coming years to transition to carbon-free steel production. In the present market scenario, a standalone solution, such as a sale, merger or a spin-off is the most viable option before the company, especially considering the rising volatility in steel markets around the world.

ALSO READ:

Thyssenkrupp Operating Profits Nearly Tripled on Elevated Steel Prices

Thyssenkrupp Lifted Full-Year Forecast for Adjusted EBIT

The lack of investment in the assets have made them less competitive when compared to those of its rivals. The stiff resistance from unions too has been a major hurdle to a potential sale.

Thyssenkrupp’s steel division assets are valued at around 1.5 billion euros. Several parties including private equity group CVC and Brazil’s CSN have reportedly expressed interest in buying out the company’s steel division.

Meantime, Thyssenkrupp, Goldman Sachs, CVC and CSN declined to make comments on the reports.