Thyssenkrupp Steel Business Sale in Jeopardy Amid Leadership Turmoil

Thyssenkrupp's steel business sale faces uncertainties following a leadership crisis. The workforce is anxious about the company's future, amid disputes over restructuring and financing. Concerns grow as Czech billionaire Daniel Kretinsky's stake and further investments in the steel unit remain unresolved. Major stakeholders have declined to comment.

Thyssenkrupp's planned sale of its steel business is in jeopardy due to uncertainties stemming from a leadership crisis within the unit, according to the German conglomerate's works council head.

"Uncertainty among the workforce is at a maximum. Fears about the future of employees and that of the company can be felt everywhere," said Tekin Nasikkol, head of the works council and member of Thyssenkrupp's 20-seat supervisory board. His comments follow the announcement by Thyssenkrupp Steel Europe (TKSE) that its chairman, CEO, and five other board members would depart, underscoring a deepening internal dispute over the unit's future.

Thyssenkrupp shares were flat at 0834 GMT, recovering some ground after an earlier 1.8% drop. Central to the conflict is the extent of the planned restructuring at TKSE and its financing needs ahead of a potential partial sale to Czech billionaire Daniel Kretinsky.

Kretinsky recently acquired a 20% stake in TKSE, raising concerns regarding the implications of the ongoing crisis on further investment talks to buy an additional 30%. Labor representatives on Thyssenkrupp's supervisory board have called for an extraordinary board meeting to address the crisis, as confirmed by an IG Metall union spokesperson.

EPCG, the vehicle used by Kretinsky for the stake acquisition, declined to comment, as did the Alfried Krupp von Bohlen und Halbach foundation, Thyssenkrupp's largest shareholder with a 21% stake.

(With inputs from agencies.)