The proposed steel merger between Thyssenkrupp and the Indian group Tata, has been delayed. Until the end of September, the merger should be. Now claims appear increasingly to an Alternative.
The Alternative answers to the name “German steel AG” – although there is still, however, politicians and trade unionists are increasingly for a German solution. The newspaper “Handelsblatt” quoted Union representatives of the IG Metall on Thursday with the words, the steel business should remain in German hands, and Tata.
Core to this is the alternative solution to the merger of the steel division of Thyssenkrupp, the German steel company georgsmarienhütte of the entrepreneur Jürgen Großmann would be. But the potential Alternative could also include the Salzgitter AG, even if their leadership wants to know nothing. “Based on this scenario, will now be renewed calls for a German steel AG”, cited the “Handelsblatt” with the plans of a familiar speaker, without naming names.
In the rumor mill – the steel boss Jürgen Großmann
One And A Half Years
Thyssenkrupp itself does not want to commit themselves officially, even after one and a half years of negotiations, until when, exactly, the group will decide on a merger of the steel division, with the competitors Tata Steel. As you have already in the past declared, should first be examined as an important pension agreement of Tata exactly, said a Thyssenkrupp spokesman in the middle of the month. “For this test we will take now the necessary time.”
It’s high Pension costs of Tata Steel. Thyssenkrupp has stated on many occasions that the equivalent of almost 17 billion Euro pension expense of the nanny would need to be cleared out of the way. The representatives of the employees of Thyssenkrupp rejected in view of the Board the question of a merger again.
The group CEO of Thyssenkrupp, Heinrich Hiesinger, however, decided for the merger, with the number two should be created in the European steel market. Market leader ArcelorMittal out of France. Another heavyweight in the industry, the Austrian company Voestalpine.
Chairman of the management Board of Voestalpine, Wolfgang Eder, said that now the German press Agency: “We have a permanent upward trend in the capacity, in the critical years after the financial crisis in 2009.” This is also why Europe, once a net exporter of steel will remain safe in the future, a net importer. “This additional pressure on the European capabilities,” says Eder.
Permanent Overcapacity
According to data from the OECD and the world steel Association, the global capacity for the production of steel in 2018 will rise to 2.43 billion tons. The need sun, but only 1.6 billion tons. Especially in Asia, a noticeable increase in production in 2019 is planned. 15 years ago, could the world only produces about a billion tons. According to an analysis by the Bank UBS, the steelmaker achieved at the best of times, such as at the end of 2008, around 215 euros per Tonne earnings before interest, taxes, depreciation and amortization (Ebitda). Currently, the Financial Times cited UBS experts expect around 100 euros. In the meantime, the prices in 2016 were crashed to only 46 euros.
The steel plant of Tata Steel in Scunthorpe, United Kingdom
The delays in the planned merger with Tata’s share in Thyssenkrupp’t get. So the papers were with a decrease of 3.18 per cent earlier this week, the worst performer in the German Dax index. One trader reasoned the weakness that some investors had counted on a swift completion of the merger of the European Steel operations of Thyssenkrupp with those of Tata Steel Europe. This Deal is impending, but now no longer, the trader said.
“Everything is better than Tata”
If the competition can come to the steel entrepreneur Jürgen großmann and his georgsmarienhütte with the idea of a German steel AG, is quite questionable. The group Georgsmarienhütte is only returned last year after a prolonged period of turbulence back into the profit zone. For the current fiscal year, insiders expect a profit of 100 million euros. The value of Thyssenkrupp’s steel division, however, is estimated according to the “Handelsblatt”, with around 6.2 billion euros.
Big man, the Boss of Georgsmarienhütte, denied by the way their own plans for the building of a German steel AG. Given the ongoing tug-of-war, the “Handelsblatt noted,” laconically: “In such cases, anything else would be negligent.” The question dealt politicians also pointed to the possibly soon upcoming change of government in the Federal state of lower Saxony.
There georgsmarienhütte like Salzgitter to your seat. The state government had declared that there were no plans for a merger of German steel companies. “By the way, but it could be with a new government”, the “Handelsblatt” an unnamed politician. And trade unionists cited the leaf with the words: “Everything is better than Tata.”
ar (dpa, rtr, Handelsblatt)