Decision today announced
In a strategic move to boost agility, innovation, and market responsiveness in the maritime defense sector, Thyssenkrupp shareholders have approved the spin-off of its marine division, TKMS. The new company is set to become an independent public company listed on the Frankfurt Stock Exchange later in 2025, with Thyssenkrupp retaining a 51% majority stake.
The spin-off, scheduled to take effect around mid-October 2025, subject to regulatory approval and commercial register entry, will establish TKMS as a separate holding company. This move is expected to provide TKMS with more entrepreneurial freedom, direct access to capital markets, and the ability to finance investments independently.
Thyssenkrupp's CEO, Miguel López, stated that the spin-off is aimed at enhancing TKMS's competitiveness and positioning it to capitalize on market opportunities globally. However, some industry analysts caution that the division will face competitive headwinds, including fragmentation of production sites, rising costs, and tough international competition.
TKMS is currently the main growth driver at Thyssenkrupp, which is also active in the areas of steel, materials trading, automotive parts, and green plant engineering. As a global leader in non-nuclear submarines and also builder of frigates and corvettes, TKMS's order backlog stands at over €18 billion, having grown by more than 50 percent since late September.
The general meeting for the vote on the future structure of TKMS is being held online today. If the spin-off is successful, it could potentially bring more entrepreneurial freedom, direct access to capital markets, and the ability to finance investments independently, as stated earlier.
Investors remain on board with the MDAX stock (Thyssenkrupp), with the stock having a strong start to the week. Thyssenkrupp's stock is up by around 2 percent on the Tradegate trading platform this morning.
In addition, a 50:50 joint venture with EP Group of Daniel Kretinsky is planned for the steel business, as EP Group already holds 20%. All other divisions of Thyssenkrupp are planned to be made independent and open to partnerships, except for the steel business.
If there are future news regarding spin-offs of other business areas, this could provide additional impetus. An Initial Public Offering (IPO) for the marine division is still planned for this year. Despite Europe's increased defense spending, most investment favors land and air systems rather than naval platforms. TKMS faces competitive headwinds, but the division is expected to navigate these challenges to realize growth and innovation benefits in a complex global defense market.
The spin-off of TKMS, set for October 2025, will allow the marine division to operate independently in the business sector, with direct access to finance markets and the freedom to independently finance investments. In the finance industry, investors have shown interest in Thyssenkrupp's stock, reflecting their confidence in the company's strategic moves, such as the planned spin-off and potential IPO of TKMS.
