ThyssenKrupp mulls selling part of European steel business

ThyssenKrupp mulls selling part of European steel business

- 01 Jul 2013

Reuters reported that ThyssenKrupp, Germany's biggest steelmaker, is examining the possibility of selling part of its European steel business to an investor.

Mr Heinrich Hiesinger CEO of ThyssenKrupp said that Thyssen had no plans to divest European steel operations.

Mr Hiesinger said that ThyssenKrupp, reeling from losses at its Steel Americas unit it is trying to sell, cannot rule out a capital increase in the next 6 to 9months.

Sueddeutsche Zeitung said that industry sources as saying that as part of a capital increase of as much as EUR 1 billion, state owned RAG foundation could buy fresh shares to ensure the steelmaker's independence.

A source familiar with the matter told Reuters on Friday that RAG, which controls chemicals maker Evonik, could buy shares in ThyssenKrupp as part of a possible capital increase at the steelmaker.

The Alfried Krupp von Bohlen und Halbach Foundation, also known as the Krupp Foundation, has a 25.3% stake in Thyssen and has been a guardian of its independence but analysts said it was unlikely to take part in a capital increase.

Source - Reuters