Germany’s Thyssenkrupp for the Ketnskmu steel mill

Nthe German company Thyssenkrupp sold a 20 percent stake in its steel company to the EP Corporate Group (EPCG) investment group of Daniel Ketnskho. Ocelrna informed about it today in the press release. The value of the transaction was not disclosed. So the companies negotiate the acquisition of another 30 percent and strive to create a joint venture in which each party would have a half share.

Thyssenkrupp announced this month that it will cut jobs and reduce capacity at its factories in Duisburg. The company is trying to rebuild its steel company, whose roots go back more than 200 years. Demand is now weakening and cheaper steel from Asia is arriving on the market. High energy prices and EU climate policy also contribute to the problems.

“Our goal is a future concept that will lead to economic independence and business success for Thyssenkrupp Steel,” said Thyssenkrupp CEO Miguel Lpez. The company published information about the deal with EPCG at the end of November. Lpez hopes that thanks to the union it will be possible to reduce the expected energy costs in connection with the reorganization of production towards procedures that are more environmentally friendly.

The deal should be completed in the current financial year. However, the transaction must be approved by the board of directors and the supervisory board of the German company.

“Thyssenkrupp went there because of the green agenda and expensive energy, but Ketnsk is a record holder,” said Trinity Bank economist Luk Kovanda about the announced transaction. According to him, the core of the current problems of the Thyssenkrupp company and the entire German industry is the green agenda. “Especially as a result of the ambitious green agenda of energy prices in Germany, prices in Asia and, for example, the United States are significantly increasing, which makes other German – and European in general – industry much less competitive,” he added.

On the contrary, Ketnsk benefits from high energy prices. Last year, his energy company had more profit than any domestic company in history. He spent 184 billion crowns. EPCG recorded record results despite the drop in energy prices on European stock exchanges compared to 2022.

The EPCG group includes Energetick a prmyslov holding (EPH), media group Czech Media Invest (CMI) and EC Investments. In EPCG, Ketnsk has 89.3 percent of the shares, the remaining 10.7 percent is held by the group of EPH managers.