FRANKFURT, Feb 6 (Reuters) - Salzgitter on Friday said it planned to buy out the co-owners of steel joint venture HKM to become the company's sole owner from mid-2026, potentially ending a spat with
Salzgitter to take over HKM steel joint venture, end clash with Thyssenkrupp
Salzgitter's Acquisition of HKM Steel
FRANKFURT, Feb 6 (Reuters) - Salzgitter on Friday said it planned to buy out the co-owners of steel joint venture HKM to become the company's sole owner from mid-2026, potentially ending a spat with Thyssenkrupp over the future of the business.
A solution around HKM, owned by Salzgitter, Thyssenkrupp Steel Europe (TKSE) and France's Vallourec in a 50-30-20 split, might end years of uncertainty over the struggling business that employs 3,000 staff.
It could also remove a hurdle in Thyssenkrupp's ongoing talks to sell its TKSE division to India's Jindal Steel International, with HKM's fate being one of the unsolved issues.
Details of the Acquisition
Under the plans, Salzgitter would buy the stakes of its co-owners for an undisclosed sum and continue HKM as sole owner from June, while also severing HKM's supply ties with TKSE in 2028, four years earlier than currently planned.
Impact on Thyssenkrupp's Business
In a joint statement, Salzgitter and Thyssenkrupp said the agreement depended on a positive assessment of HKM's future commissioned by Salzgitter as well as Vallourec agreeing to sell its stake.
Future of HKM Steel
Vallourec was not immediately available for comment.
(Reporting by Christoph Steitz, Editing by Miranda Murray and Linda Pasquini)
