Thyssenkrupp Agrees to Sell a 20 Percent Stake in Its Steel Business to Czech Billionaire Daniel Kretinsky's EP Corporate Group

The exact amount has not been disclosed, but the two companies are discussing the potential acquisition of an additional 30 percent stake in the steel business by EP, aiming to establish a jointly managed joint venture on an equal partnership basis.

Financial details were not disclosed, but Christian Obst, analyst at Baader, estimates that Thyssenkrupp could receive between 350 million and 400 million euros for the 20 percent stake, assuming that there are no further write-downs in the business.

The agreement is expected to open a new chapter for Thyssenkrupp's steel business. The steel production of the German industrial conglomerate has been a burden on profits for a long time, and the company has been trying to divest from it for years.

Earlier this month, Thyssenkrupp announced job cuts and a reduction in production in its steel business due to market challenges. Weak demand, high energy costs, and increasing competition from Asia are weighing on the business.

European Steelmakers Generally Feel the Pressure from Low Margins and Weaker Demand, Forcing Them to Cut Jobs to Reduce Costs. Last year, the German company Kloeckner & Co. announced plans to cut 10% of its workforce in its European distribution business, while Sweden's SSAB has recently succeeded in adjusting work practices to retain half of its Finnish workforce.

"A global initiative to meet environmental goals also presents steel manufacturers with enormous investment requirements for decarbonizing their operations, as customers increasingly demand low-carbon alternatives to conventional steel."