Restructuring at Thyssenkrupp: Independence of the Steel Division in Focus

The German industrial conglomerate Thyssenkrupp has reiterated its intention to establish its steel division as an independent entity. This announcement follows a decision by the European Court of Justice, which upheld a 2019 veto by the European Commission. The veto blocked a merger between Thyssenkrupp's steel division and the European steel business of the Indian company Tata Steel. To support this strategy, Thyssenkrupp referenced the acquisition of 20 percent of the steel division by the energy company EP Corporate Group (EPCG) in July. Currently, Thyssenkrupp and EPCG are in discussions about acquiring an additional 30 percent stake in the steel division. The goal is to form an equal joint venture with each holding a 50 percent stake. The European Commission had rejected the merger with Tata Steel on competitive grounds, thereby averting significant harm to European industrial customers and consumers, as stated at the time from Brussels. The planned merger could have created Europe's second-largest steel group, with approximately 48,000 employees and plants in Germany, the United Kingdom, and the Netherlands. To reduce its dependency on the volatile steel business, Thyssenkrupp took legal action. However, the European Court of Justice dismissed the complaint in June 2022 and has now fully rejected the appeal against this decision.