Image Source: ReutersReuters reported that Thyssenkrupp could halve its stake in a planned European steel joint venture with Tata Steel if they list it on the stock market by end-2024, a board member of the German industrial group said. Thyssenkrupp personnel chief Oliver Burkhard told journalists that Tthe two have committed to holding equal stakes for the first six years of the company''s existence.
Thyssenkrupp a day earlier reached a deal with steel workers to secure jobs and plants, a key condition for the joint venture, which will create Europe''s second-largest steelmaker, to go ahead next year. Shares in Thyssenkrupp were down 0.9 percent at 1309 GMT, leading decliners in a flat German market .
Traders and analysts said unions had been able to extract far-reaching commitments from management.
Mr Sven Diermeier, senior analyst at Independent Research said that "The likelihood of the joint venture''s creation has increased, which we welcome. However, the flexibility of the entity and Thyssenkrupp is constrained by the agreement."
The agreement with unions foresees no forced layoffs or major site closures before September 2026, labour representatives and the company said.
It still requires approval from the members of IG Metall, Germany''s most powerful union, which will cast their votes between Jan. 13 and Feb. 2.
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