FRANKFURT/DUSSELDORF (Reuters) – The sale of Thyssenkrupp’s steel division is under threat following a management crisis at the unit, the German conglomerate’s works council chairman said on Friday.
Thyssenkrupp Steel Europe (TKSE) announced on Thursday the resignation of its chairman and chief executive officer due to a conflict over the future direction of the division with the parent company.
The dispute focuses on two questions: the scale of the restructuring and the investment required, while a partial sale to Czech billionaire Daniel Kretinsky is already planned.
“Uncertainty among workers is at its peak. Fears about the future of employees and the company are felt everywhere,” said Tekin Nasikkol, who also sits on Thyssenkrupp’s 20-member supervisory board.
Miguel Lopez, the chief executive of Thyssenkrupp, who is responsible for concluding the sale of TKSE, considered that a plan presented earlier this month and approved by the consulting firms Roland Berger and McKinsey did not go far enough.
“Miguel Lopez will now implement this strategy even more quickly and consistently. That is the clear message of yesterday’s developments,” said Marc Tuengler of DSW, a lobby group representing Thyssenkrupp’s private shareholders.
Economy Minister Robert Habeck has encouraged all stakeholders to put aside their differences and look after the future of the company.
Daniel Kretinsky recently acquired a 20% stake in TKSE and there are concerns about the impact of the current crisis on ongoing negotiations to buy an additional 30% from Thyssenkrupp, according to people familiar with the matter.
“We can assume that discussions with Daniel Kretinsky about a 50-50 joint venture are now accelerating,” Marc Tuengler said.
EPCG, Daniel Kretinsky’s investment vehicle, declined to comment.
The Alfried Krupp von Bohlen und Halbach Foundation, Thyssenkrupp’s largest shareholder with a 21 percent stake, also declined to comment.
Union representatives on the Thyssenkrupp supervisory board have requested an extraordinary board meeting to discuss the current crisis, a spokesman for the IG Metall union said.
(Reporting by Christoph Steitz and Tom Kaeckenhoff; with contributions by Ludwig Burger; by Mara Vîlcu; edited by Augustin Turpin)
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