German Conglomerate To Sell Off Troubled Unit in India. Shares Gain 5%
German industrial conglomerate Thyssenkrupp AG (TKA.DE), known for its steel production, automotive parts, and industrial technology, is gaining nearly 5% on the stock market today following reports that it may finally be close to a landmark sale of its troubled steel unit. According to Reuters, Thyssenkrupp is considering gradually transferring control of Thyssenkrupp Steel Europe to the Indian group Jindal Steel International, first with a 60% stake and then the rest in subsequent stages. Such a transaction model could finally resolve the complications that have been ongoing for years related to approximately €2.5 billion in pension liabilities, which effectively blocked earlier attempts to sell. In the eyes of investors, this is a sign that succession may be more realistic than ever. For Jindal Steel, this would be a bold move towards the European market following its recent acquisition of the Czech company Vitkovice Steel.
An additional boost to sentiment surrounding the group comes from Deutsche Bank’s fresh recommendations regarding the group’s subsidiary, Thyssenkrupp Nucera (NCH2.DE). Analysts raised their rating from “hold” to “buy,” indicating that the company’s activity is approaching a market trough and that current price levels may offer an attractive entry point. Although the target price was lowered from €12 to €11, analyst Michael Kuhn emphasized that Nucera maintains solid fundamentals and is preparing for a new growth cycle in the green energy sector.
On the wave of this information, Thyssenkrupp shares are gaining today, as the market is beginning to believe that the company is indeed approaching a point where its biggest problems will be behind it. A reduced focus on steel and a greater emphasis on high-margin segments, from industrial technology to green hydrogen, could strengthen the financial position of this well-known German industrial brand.
The company’s shares have broken above the 50- and 100-day exponential moving averages, which may mean that the stock has returned to its long-term upward trend. However, it is worth remembering that recent sessions have been more volatile for the company, which may increase price fluctuations (RSI for the 14-day average close to 70 points). Source: xStation
The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.
