The big project is the group chief Executive of Kerkhoff is about to. The announced Joint Venture with Tata tilts – because Brussels would have probably put in a Veto. At the same time, the group wants to delete 6000.
High-flying plans: steel mill of Thyssenkrupp in Duisburg (archive footage)
Thyssenkrupp wants to cancel its planned split into two parts. The proposed steel merger with the Indian company, Tata Steel was up from the table, confirmed the industry group in Essen, Germany. The merger would be Europe’s second largest steel group with approximately 48,000 employees and plants in Germany, the UK and the Netherlands emerged.
Earlier, the Reuters news Agency had reported on the appropriate plans. In this message it was said that the top management of the group consider now a holding company structure – with the possibility of the Elevator division to separate or to bring in part to the stock market.
At the same time, the group wants to save massively. 6000 Jobs will be eliminated, including 4000 in Germany. Compulsory redundancies could not be ruled out in the case of a removal program of this magnitude, said personnel Director Oliver Burkhard. In the overall number of 2000 Points, which should also be used in the steel merger with Tata deleted. “It is quite a deep incision,” said Burkhard.
Thwarted: Thyssenkrupp-In-Chief Guido Kerkhoff
The originally planned distribution in a industrial-goods – and a material group is considered to be vested the project to the CEO Guido Kerkhoff, for almost a year in office. However, because of the fall in the Price of the Thyssen-shares – on Wednesday, the rate had fallen to its lowest level in 15 years – has the decomposition according to the experts, no longer makes sense.
Because of the cyclical materials business should be financially secured, by it holds a participation to the professional industry, the more profitable goods group. The less Thyssenkrupp, however, is the value, the higher the participation of the material would have to be group. In addition, the cost of the decomposition in the group were estimated to be around one billion euros. Therefore, the new Supervisory Board boss Martina Merz have provided the project is once again put to the test, reports Reuters citing unnamed insiders.
Of the role: rolled on goods waggongs
The still of Kerkhoffs predecessor Heinrich Hiesinger proposed merger of steel business with the rivals Tata Steel would not be approved by the European authorities, said Thyssenkrupp. There are “continuing concerns of the EU Commission”. Therefore, we have reviewed the “strategic options for the company”. Thyssenkrupp and Tata had decided divisions in 2018, the Fusion of their European Steel.
More Delicate Collective Agreement
For the approximately 27,000 steel workers of the company, the Veto of the EU Commission was “a hard blow,” said Kerkhoff. To them the merger with Tata would have given “a perspective for the future”. The IG Metall had a guarantee of Employment until 30. September 2026, as well as a long-term security is achieved. This collective agreement will not now come into force, said human resources Board member Burkhard.
The share of the DAX-listed company, which employs 160,000 people, responded in the meantime with a Plus of more than 15 percent. Background the hopes of investors who had repeatedly called for an IPO in the Elevator business, as he is apparently now considered.
jj/cgn/qu (rtr, dpa)