Czech billionaire Daniel Kretinsky’s EP Group has decided to sell its 20% stake in Thyssenkrupp Steel Europe and terminate joint venture plans. According to statements from the parties, EP Group will recover approximately 140 million euros (164 million dollars) that it had paid for the stake.
This development signals that long-standing German-Czech steel alliance plans have been completely shelved. While uncertainty continues over the future of Thyssenkrupp’s steel unit, the company is expected to accelerate discussions with Indian Jindal Steel, which last month submitted a non-binding offer for the entirety of TKSE.
Following the news, Thyssenkrupp shares initially dipped but later recovered, trading with a 1.6% gain.
The European steel sector remains under pressure due to cheap imports from China, high energy costs, and delays in hydrogen-based decarbonization investments. Kretinsky’s withdrawal also underscores the long-standing criticisms from unions about the “lack of cooperation.”
Source: Reuters
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