Miguel López has drawn a line in the sand. The Thyssenkrupp chief executive is refusing to sell the conglomerate’s legacy steel division on the cheap, even as negotiations with India’s Jindal Steel remain stuck in neutral. “I will not give away the steel business for a pittance,” López told Der Spiegel, signaling a newfound confidence that has shifted the dynamics in the protracted sale process.
The German industrial group still intends to offload a majority stake in its steel operations to Jindal, but the boss insists there is no longer any urgency to strike a deal at unfavorable terms. Three developments have strengthened Thyssenkrupp’s hand in recent weeks. A freshly signed restructuring agreement with labor unions is cutting costs across the division. The sale of its stake in Hüttenwerke Krupp Mannesmann (HKM) to rival Salzgitter has cleaned up the balance sheet. And new European Union steel safeguard tariffs are providing a tailwind for the entire sector.
López, however, has ruled out the most obvious Plan B. A merger with Salzgitter is off the table entirely. Instead, Thyssenkrupp is pursuing a strategy of “less volume, more efficiency” for its remaining steel business. The centerpiece of this approach is a green direct-reduction plant in Duisburg, designed to produce lower-emission material while shrinking the division’s overall footprint.
The CEO’s tough talk extends beyond the negotiating table. He dismissed the EU’s “Buy European” provisions for green steel as unprofessional, arguing the rules mandate climate-friendly production without requiring European sourcing, which he says creates a dangerous reliance on imports from Asia. He also poured cold water on the German government’s proposed €1,000 energy price premium for industrial workers, calling it inadequate for addressing the sector’s structural challenges.
Should investors sell immediately? Or is it worth buying Thyssenkrupp?
Thyssenkrupp is steadily dismantling its traditional conglomerate structure. The board is building a portfolio of independent units that can move more nimbly in their respective markets. The planned initial public offering of the naval division Thyssenkrupp Marine Systems (TKMS) is the most visible sign of this transformation. Meanwhile, the Materials Services trading unit is under review, with management weighing a sale, a spin-off, or its own IPO. A decision could come before year-end; the division generated roughly €11 billion in revenue last year.
Another potential catalyst sits in the elevator business. Thyssenkrupp retains a stake of just over 16 percent in TK Elevator, whose majority owners are targeting an IPO this year that could value the manufacturer at up to €25 billion.
Investors, however, remain unimpressed by the bullish rhetoric. Thyssenkrupp shares closed Friday at €8.82, down 1.72 percent on the day. The stock has now lost nearly nine percent since the start of 2024. Technically, the picture looks precarious: the relative strength index hovers around 31, flirting with oversold territory, while the share price trades more than ten percent below its 200-day moving average. The market is waiting to see whether López’s hardball tactics will ultimately yield a better price from Jindal — or leave Thyssenkrupp holding a division it no longer considers core business.
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