ThyssenKrupp discards Tata merger, plan to split

Friday, 10. May 2019 13:05

ThyssenKrupp AG confirmed on Friday that the proposed merger with Tata Steel is no longer planned as both companies expect that the European Commission will not approve it due to competition concerns.

The industrial company's Executive Board has therefore proposed to the Supervisory Board not to proceed with the planned split into two independent companies due to "economic downturn" and the "current capital market environment." The board will also propose an initial public offering (IPO) of the Elevator Technology unit.

ThyssenKrupp noted it will reintegrate the Steel Europe Business Area back into the Group in the third quarter of the current fiscal year. It projected that its adjusted EBIT will range from €1.1 to 1.2 billion in the 2018/19 financial year and a net loss. The company's CEO Guido Kerkhoff announced later in the day that 6,000 employees will be laid off, most of them in Germany.

Shares rocketed 18.78% at 1:07 pm CET to €13.32, highest since April 23.

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Breaking the News / NI