Czech billionaire Daniel Kretinsky expanded his industrial empire in Europe on Friday with the acquisition of 20% of the steel activities of the German group Thyssenkrupp, which joins a well-stocked portfolio in energy, distribution and media.
The two companies are also discussing the acquisition of an additional 30% of the capital of Thyssenkrupp Steel by Daniel Kretinsky’s holding company, EPCG, the German company said in a press release.
The objective would then be to form an equal 50/50 joint venture between the two partners. The price of the transaction was not revealed but a financial Source close to the matter, interviewed by AFP, valued the purchase of the 20% at between 350 and 400 million euros.
The ThyssenKrupp group, all activities combined, is currently valued at around 3 billion euros.
The arrival of Daniel Kretinsky comes in a very difficult context for the German steelmaker, which has been suffering for several years.
The group is facing a difficult situation: German industry has been slowing down for several quarters and is unable to absorb the overabundant supply of steel on the market, dominated by Chinese producers.
Staff fears
The boss of the Thyssenkrupp group, Miguel Lopez, said his objective, through the partnership with the Czech billionaire, was to avoid ‘economic redundancies’ in the activity and hoped that he would bring the steel division back towards ‘autonomy. ‘ and ‘success’.
The latter currently employs around 27,000 people.
But on the side of staff representatives, concern dominates.
‘What are Kretinsky’s intentions? What is its industrial plan and concept? We refuse dismantling or slimming down,’ declared the chairman of the works council of the Thyssenkrupp group, Tekin Nasikkol, in a press release.
Employee representatives only learned the news at the last minute: ‘It’s neither a good style nor a good start,’ said Jürgen Kerner, vice-president of the main German union, IG Metall, as well as the supervisory board of ThyssenKrupp.
In principle, the union is not ‘against’ the arrival of investors, but it is concerned about the threats of layoffs and site closures.
On April 12, the German company already announced a sharp reduction in its annual steel production capacity, from 11.5 million to 9.5 million tonnes, which will result in ‘a reduction in jobs’.
Thyssenkrupp’s latest attempts to revive the steel industry, by making it independent of other activities (construction materials, submarines, etc.) and by backing it with a solid financial partner, have failed.
The German press reported last summer the first rumors concerning a takeover of the steel division by the Czech billionaire, after the failure of negotiations with the British Liberty Steel in 2021.
Decarbonize the industry
With this acquisition, Daniel Kretinsky, already very present in the energy sector, said he wanted to make ‘an important contribution to the decarbonization of the steel industry’, according to the press release.
EPCG intends to interfere in ‘the formulation and implementation of the strategy’ of ThyssenKrupp Steel, explained Jiri Novacek, member of the holding board.
Mr. Kretinsky, whose fortune is estimated at $9.3 billion by Forbes, has been known for several years for coming to the aid of large European groups, particularly in energy, but also in distribution and the media.
The main holding company which brings together its interests, EPCG, is one of the main private industrial groups in Europe.
Historically linked to coal, from which it aims to almost exit from 2025, its activities also include the production and distribution of electricity and gas.
He then tackled distribution and services, notably by entering the capital of the French group Casino in 2019, before the brand passed completely into his hands in March of this year.
Daniel Kretinsky is also present in the media and publishing, in his country but also in France, via Lagardère Active, the Le Monde group until last fall, the Editis group and a share in the capital of TF1.
/ATS
