Thyssenkrupp is actively considering several exit routes for its materials trading unit, Thyssenkrupp Materials Services (MX), including a spin-off, an initial public offering or a sale, according to people familiar with the discussions. The business, which generated 11.4 billion euros in sales last year and represents more than a third of the group's turnover, could be separated from the parent company by as early as autumn, one source said.
Corporate deliberations include the possibility of reconstituting MX as a KGaA, a legal form designed to preserve the parent group's control even if a majority stake were sold. That structural change is being examined as a means to retain strategic influence over the division in scenarios where outside investors would otherwise hold a controlling interest.
Those close to the talks emphasised that deliberations are ongoing and that no binding decisions have been taken. Details remain subject to change. Thyssenkrupp issued a statement confirming that MX is "well on track" to be ready for capital markets and reiterated that it is pursuing a stand-alone solution for the business. The company added that timing for any transaction will depend on market conditions.
Any move to list or sell MX appears to hinge on stronger operational results in the division's second fiscal quarter, which ends in March. People familiar with the matter said improved performance in that quarter is a precondition for a successful divestment process.
The potential separation of MX comes amid a broader restructuring under Chief Executive Miguel Lopez. The overhaul has already included the spin-off of the group's defence division and continues while discussions about the sale of Thyssenkrupp's steel unit remain ongoing.
MX's strategic footprint is notably U.S.-focused, and it faces a consolidating competitive landscape there. Industry moves cited by sources include the merger of Ryerson with Olympic Steel and Worthington Steel's proposed acquisition of Kloeckner & Co for $2.4 billion. In the U.S. steel service market, MX ranks fourth behind Reliance, the combined Ryerson/Olympic Steel entity and Kloeckner.
Thyssenkrupp characterised consolidation in the U.S. as a potential opportunity for Materials Services rather than a threat. Citing the proposed deal that values Kloeckner at 8.5 times its core profit, the sources estimated that MX could command roughly 2 billion euros if sold at comparable valuation multiples.
Company officials also noted that, as with any contemplated transaction, the precise timetable will be determined by market dynamics. The conversations around MX's future do not yet amount to a concluded plan, and executives and advisers reportedly continue to weigh options.
Key operational facts:
- MX sales in the prior year: 11.4 billion euros (approximately $13.5 billion).
- MX contribution to group sales: more than one third.
- Potential valuation reference: around 2 billion euros based on an 8.5x core-profit multiple used in a comparable deal.