Liberty bid for Thyssenkrupp’s steel unit still contains open issues

Tuesday, 02 February 2021 12:07:29 (GMT+3)   |   Istanbul
       

CEO of Germany-based Thyssenkrupp, Martina Merz, has stated in a speech prepared for the company’s annual general meeting that the company is currently examining UK-based Liberty Steel’s offer for its steel unit carefully. “This offer is still not binding and contains a number of complex aspects that require further clarification,” she said.

Liberty Steel Group’s firmed-up bid for Thyssenkrupp’s steel unit calls for Thyssenkrupp to inject capital to cover a €4 billion pension shortfall, giving it a negative equity value of at least €1.5 billion, according to Bloomberg.

“At the same time, as we have emphasized from the start, we do not intend to make ourselves dependent on any third party and are working hard on an alternative solution to make steel fit for the future by our own efforts,” the Thyssenkrupp CEO stated. The company is considering two options, keeping the steel unit as part of the company or a spin-off of its steel unit, as SteelOrbis understands.

Last month, Liberty Steel submitted a firmed-up bid for Thyssenkrupp’s steel unit based on the results of due diligence, as SteelOrbis previously reported.


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