The Essen-based company is writing off 1.8 billion euros on the steel business, bringing it a step closer to finding a solution for the loss-making division. Investors celebrate the decision.
Thyssenkrupp shares started trading on Wednesday with a big gain of seven percent. The gain follows the company’s announcement that it would write down a further 1.8 billion euros on its troubled steel business. This measure increases the likelihood that the German industrial group will finally be able to sell off parts of the business area.
For years, Thyssenkrupp has been trying to either spin off or sell its loss-making steel business. However, negotiations to sell half of the business to Czech billionaire Daniel Kretinsky have run into difficulties. On Wednesday, the company announced that constructive discussions about a potential joint venture are in focus.
Advertising ShortLong