German Thyssenkrupp seeks new iron and steel partners, says CEO at paper

FRANKFURT (Reuters) – Thyssenkrupp will still seek partners for its steel business after the European merger with Tata Steel has been abandoned, chief executive Guido Kerkhoff said in comments on Sunday.

Kerkhoff on Friday abandoned a restructuring plan in which the merger was a key element. Rather, it has decided to turn the Underwater Steel Group into a holding company and to list its profitable activities in the elevator sector.

Since then, he has agreed with the unions to follow up on his new strategy, which foresees 6,000 job cuts, or around 4% of Thyssenkrupp's workforce. The project will be submitted to a vote of the Supervisory Board on May 21st.

Thyssenkrupp abandoned the long-standing merger of its steel business with the European activities of Tata Steel, which would have created the region's second-largest producer after ArcelorMittal, due to opposition from European Union regulators.

"Of course, with steel, we are looking for other consolidation options," Kerkhoff told the online edition of the business daily Handelsblatt.

"But with the current position of the European Commission, I do not see the possibility of larger mergers. As a result, we will remain the majority shareholder. "

Thyssenkrupp, which has announced that it will report a negative cash flow this year, is seeking a financial blow to the partial division of its elevator division.

"We will tackle that as soon as possible and then see what is the right moment," Kerkhoff told Handelsblatt.

Kerkhoff said: "We want to strengthen Thyssenkrupp's balance sheet to increase the scope for restructuring. This has the highest priority. "

Activist investors are calling on Thyssenkrupp to monetize its elevator business, which analysts say could reach 14 billion euros ($ 15.7 billion), double the company's market capitalization. mother.