Thyssenkrupp before radical conversion: only a shadow of the steel giant?

Thyssenkrupp before radical conversion: only a shadow of the steel giant?

Essen, Deutschland - The traditional group Thyssenkrupp faces a profound conversion. It is planned to convert the company into a financial holding, such as welt.de reported. The aim of this radical step is to create the basis for the sale of further divisions. The plans provide to reduce the company's headquarters from currently 500 to only 100 employees, which brings with it a drastic reduction in administration, in which around 1,000 jobs are to be eliminated.

The steel area in particular is affected by the restructuring. With 16,000 employees and annual sales of 12.1 billion euros, the steel area is one of the largest divisions of Thyssenkrupp. This is to be fully brought to the stock exchange, which could mean the end of steel trade for the group. Serious changes in the form of closings or sales are also planned in the car supplier division. According to boerse.de it is warned that in the end only one "roof company could remain without content".

challenges and decision -making processes

The Supervisory Board of Thyssenkrupp is faced with the task of approving these far -reaching plans. Larger counter -votes within the committee are not to be expected. Particular attention also applies to the planned contract extension of the CEO Miguel López. This should come to the vote on September 16; Thyssenkrupp itself, however, refused to comment on the details of the contract extension.

Another interesting aspect is the possible change in the company's trading daughter. The need to switch to the legal form of a financial company brings with it many challenges. According to Section 2f of the Banking Act, which has been in force since the end of 2020, financial holding companies must be subject to strict regulations. This regulation, introduced as a response to the Wirecard scandal, ensures that BaFin can monitor not only the institutes, but also the entire group of companies more intensively, such as kpmg explained.

legal perspectives and regulatory framework

The changeover to financial holding not only requires a permit from BaFin, but also brings numerous requirements for the administrative and supervisory bodies as well as extensive reporting obligations. This could mean additional administrative effort for Thyssenkrupp, while the company focuses on the upcoming sales and restructuring.

summarized Thyssenkrupp is at an important turning point in his company history. The developments of the coming weeks and months will be decisive to clarify how the group will position itself on the market in the future and whether the changes can bring the hoped -for success.