Thyssenkrupp's €2B Materials Services Spin-Off Nears Stock Market Debut
Thyssenkrupp is pushing ahead with plans to spin off its Materials Services division, a major step in the company's restructuring under CEO Miguel López. The trading unit, which generated €11.4 billion in revenue last year, could become independent as early as autumn—possibly through a stock market listing.
The spin-off hinges on a strong performance in the second fiscal quarter. If successful, the division may be restructured as a Kommanditgesellschaft auf Aktien (KGaA), a hybrid legal form combining partnership and corporate elements. Analysts estimate its value at around €2 billion, based on comparisons with competitor Kloeckner.
Materials Services specialises in trading, warehousing, and logistics for metals and raw materials. It ranks fourth in the U.S., its largest market, behind Reliance, Ryerson/Olympic Steel, and Kloeckner. Over the past five years, the division has expanded its U.S. presence through acquisitions, including Olympic Steel's metals distribution business in 2023. This growth has lifted its market share from about 5% in 2021 to roughly 8% by 2025, driven by demand in automotive and aerospace sectors.
Thyssenkrupp sees the ongoing consolidation in the U.S. market as an opportunity. Competitors merging or restructuring could create space for Materials Services to strengthen its position further. The division's revenue last year made up over a third of Thyssenkrupp's total sales, highlighting its importance to the group.
A successful spin-off would provide Thyssenkrupp with a significant capital injection, estimated at around €2 billion. The move aligns with the company's broader transformation strategy under López. The U.S. market's consolidation and Materials Services' recent growth suggest favourable conditions for the division's future as an independent entity.
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