Key facts
- Thyssenkrupp plans to spin off its materials trading division.
- The materials trading division accounts for over a third of Thyssenkrupp's sales.
- The company is considering changing the division's legal form to a KGaA.
- A potential listing of the division could occur by autumn.
- The divestment could occur as soon as 2026.
Thyssenkrupp is planning to spin off its materials trading division, a significant move that represents the divestment of its largest division by sales as part of a broader restructuring effort. This strategy aims to transform the German conglomerate into a holding firm, following previous divestments of its hydrogen and marine divisions through stock market listings.
The materials trading division, known as Thyssenkrupp Materials Services (MX), accounts for over a third of the group's sales, generating 11.4 billion euros ($13.5 billion) last year. Sources indicate that the company is considering various options, including a spin-off, listing, or outright divestment, potentially as early as 2026. A listing on the capital market could occur as soon as autumn, though the exact timing is contingent on market conditions.
In parallel, Thyssenkrupp is examining a change in the division's legal structure to a KGaA (Kommanditgesellschaft auf Aktien). This corporate form would ensure that control remains with the parent company even in the event of a majority sale, providing a safeguard for Thyssenkrupp.
The company stated that MX is "well on track" to become capital-market ready and that it sees potential for consolidation in the U.S. market, where MX is the fourth-largest steel service player. This market is experiencing consolidation, with Ryerson having merged with Olympic Steel and Worthington Steel planning to acquire Kloeckner & Co for $2.4 billion. Thyssenkrupp views this market dynamic as an opportunity for its materials services division.
For a successful divestment, improved performance in the second fiscal quarter ending March is a condition. Based on Worthington's proposed bid for Kloeckner, Thyssenkrupp Materials Services could be valued at approximately 2 billion euros.