The steel company Salzgitter also wants to continue working with the two unsuccessful bidders after the cancellation of a takeover of GP Günter Papenburg and TSR recycling.
“We have known both companies and have been maintaining good business relationships for years,” said CEO Gunnar Groebler in front of around 300 shareholders at the Annual General Meeting in Wolfsburg. You don’t want to change that despite the cancellation.
“Above all, it is important to me to successfully continue the good cooperation between Salzgitter AG and the two consorts,” said Groebler. Especially since Papenburg has been a stable major shareholder for years. The building contractor had even increased his share again recently: With 26.7 percent (as of November 2024), Papenburg has now been the largest single shareholder in front of the country of Lower Saxony, which holds 26.5 percent. Papenburg’s proportion is currently just under 30 percent, it was said on the edge of the general meeting.
The group’s share was initially strong in the minus over the trading day, but suddenly attracted around half an hour before the conclusion of the trade and finally noticed around one percent lower at almost 23 euros. The reason for the abrupt price increase was a report by the Bloomberg news agency, according to which the group is considering a billion-dollar sale of the filling and packaging investment subsidiary KHS.
The business could be assessed with up to one billion euros, as it was said to be familiar with the matter. The considerations are in an early stage and a formal examination or sales process are not yet in progress. The company did not want to comment on the information Bloomberg.
Takeover offer rejected
At the end of 2024 it became known that Papenburg, together with TSR, is considering a takeover offer for the steel company. Later both presented a non -binding bid. The Salzgitter board had rejected this in April as too low and announced that Salzgitter wanted to remain independent.
Before that, there were intensive discussions, which Groeblers described as “very constructive exchange”. In the end, however, there were “significantly different ideas about the current and future value of the company”. The consortium had offered 18.50 euros per Salzgitter share.
At the Annual General Meeting, Groebler only narrowly missed a loss of voting: With less than 56 percent, the shareholders granted him the relief, which is otherwise considered a matter of form. However, all other board members were relieved almost unanimously with more than 99.9 percent. A representative of Papenburg had previously requested that the board members be released individually.
Three applications even fell through the shareholders completely. It was about the possibility to acquire your own shares, the use of so -called derivatives in such stock purchases and the possibility of being able to prevent general meetings in the future purely virtually.
Return from the country
IG Metall and the state of Lower Saxony had seen the takeover plans critically from the start. Finance Minister Gerald Heere (Greens) again issued a cancellation at the general meeting. “The state of Lower Saxony expressly stands for its participation in Salzgitter AG.” The course of the board to transform the company to green steel also has its full support.
Green steel is delayed
The company relies on CO2-neutral steel, which will come from Salzgitter in the future. “For us, green steel is the future,” said Groebler. Germany’s third largest steel company is currently investing more than two billion euros in the renovation of the main plant, including one billion euros, the federal and state governments. However, the rout is delayed somewhat, as Groebler admitted. Instead of the end of 2026, the new facility should not deliver green steel until 2027.
The date that has been targeted so far could not be kept due to a construction delay in the electric light arc stove, said Groebler. Commissioning is postponed by “a few months”. By 2033, the company plans to switch completely to green steel and gradually replace the three coal -fired blast furnaces with systems that initially run with natural gas and later with green hydrogen.
Group slips into red numbers
The steel company suffers from the currently weak economy, high electricity prices and a falling steel demand. Last year, the company slipped into the red with almost 350 million euros after taxes, and the bottom line was also lost almost 35 million euros in the first quarter of 2025. “This is simply not sufficient,” said Groebler. And it does not correspond to the company’s ambitions either.
In view of the weak development, Salzgitter had recently tightened its ongoing savings program. Instead of the 250 million euros per year that has been targeted so far, 500 million euros are to be saved annually by 2028. And the first 150 million euros of it have already been reached. “We are actually in implementation,” said Groebler. “We are actually in the process of lifting this saving one to one.”
Armaments should boost steel demand
Groebler also relies on the federal government -financed investment plans of the federal government in defense and infrastructure. Both will also boost the demand for steel. And especially with safety steel for the Armaments the Salzgitter boss sees great opportunities. “We expect a significant expansion.” So far, armor has not played a major role in Salzgitter. The largest buyer is traditionally the auto industry.
/FJO/DP/Men
Wolfsburg (dpa-Afx)
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