Steel

ThyssenKrupp’s hydrogen hype is oddly conservative

13 Jan 2022

The German group is seeking 600 mln euros from an IPO of Nucera, which uses green power to make the gas from water. It expects the energy transition to inflate sales from almost nothing to 650 mln euros by 2025. Compared to hope-filled listed rivals, the valuation looks sober.

Capital Calls: Risky banks, UK SPAC, AO World

23 Nov 2021

Concise views on global finance: A global watchdog reckons JPMorgan is once again the world’s most systemically important lender; investment firm Hambro Perks launches a UK blank-cheque vehicle; the British online retailer issues its second profit warning in two months.

EU-U.S. green steel deal shows way for COP26

2 Nov 2021

Washington and Brussels will set a common external tariff for dirtier types of the metal. It’s similar in effect to the EU’s carbon border levy, with less of the grief. The lesson for Glasgow negotiators is that sector-based deals may be a safer bet than big multilateral ones.

Viewsroom: Soccer, steel and the COP; Andrea Orcel

28 Oct 2021

As world leaders and corporate chieftains converge on Glasgow for the UN climate powwow, Rob Cox and George Hay talk about one European steel town's struggle to transition from hydrocarbons to a green new era. And Lisa Jucca discusses the latest on UniCredit’s M&A options.

Moving carbon goalposts will be a wrenching burden

27 Oct 2021

The work required to make a net-zero transition is far harder than regularly announced political targets suggest. A soccer team in Taranto, Italy, home to Europe’s largest and most notorious steel mill, offers a glimpse into the economic struggles facing cities the world over.

UK’s Gupta merits net zero rescue in all senses

1 Apr 2021

The steel entrepreneur’s tottering industrial empire is a tricky candidate for a state bailout. But it could give the government a chance to decarbonise a major source of emissions. Done smartly, it may help Britain hit green goals and stabilise a perennially flaky sector.

Boris Johnson will feel Gupta steel jitters too

10 Mar 2021

GFG Alliance says it has adequate funding, but key financing partner Greensill is collapsing. If Sanjeev Gupta’s industrial empire were to struggle, the UK leader has little economic reason to save its British operations. Yet domestic politics may still force him to step in.

Thyssenkrupp is acid test of German green resolve

19 Nov 2020

The ailing giant’s steel arm lost 950 mln euros last year and is a major carbon dioxide polluter. Right now it would cost a bomb to convert the division into a hydrogen-powered, low-carbon star. Still, extending subsidies would chime with Berlin’s commitment to a green recovery.

Corona Capital: DraftKings, Palantir Technologies

13 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: DraftKings gets lucky; Palantir needs to hike faster.

Thyssenkrupp has strong hand in European steel M&A

16 Oct 2020

The $3 bln German conglomerate received an offer from Liberty Steel, with no price divulged. The good news for Thyssenkrupp investors is that the bid may prompt rival offers. Even better, the cash from a recent elevator sale gives it the time to wait for the best price.

Corona Capital: Quarantines, UK bailout, Drugs

3 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Britain relaxes its “bonkers” quarantine rules; a small UK bailout sets a troubling transparency precedent; and India’s drugmakers click into dealmaking mode.

Thyssenkrupp’s ‘bad bank’ needs speedy euthanasia

19 May 2020

The ailing German conglomerate is carving out loss-making units it can either sell or shut down. Such frank self-assessment is a solid step towards recovery. But with 2020 losses set to dwarf last year’s 400 mln euros, the quicker they’re put out of their misery the better.

ArcelorMittal spring clean has dark hint of winter

12 May 2020

Shares in the world’s largest steelmaker slumped after it said it would raise $2 bln of shares and equity-linked debt. Cutting borrowing is prudent with lockdowns sapping demand. The unexpected nature of the move, and partial take-up by the Mittal family, are less reassuring.

ArcelorMittal gets better bargain in Italian row

5 Mar 2020

A legal fumble is forcing Rome to invest in troubled steelmaker Ilva. ArcelorMittal, which was due to pay 4.2 bln euros to buy and relaunch the toxic plant, cuts its bill and exposure to Italy’s virus-infected economy. The state gets stuck with another loss-making asset.

Sinking Thyssenkrupp needs more than a quick lift

21 Nov 2019

The German group’s shares fell after it cut its dividend. Selling its elevator unit will raise cash but leave a loss-making rump. With restructuring, the steel-to-ships maker could be worth much more than the current 7.5 bln euros, but boss Martina Merz faces an arduous climb.

ArcelorMittal win will help India heal debt wounds

15 Nov 2019

The country’s top court squashed a decision that threatened the steelmaker’s $6 bln bid for Essar through a new bankruptcy regime. The Mittal family’s homecoming can go ahead. It’s also a timely boost for lenders and investors needed to re-energise the flagging economy.

Buyout groups risk pricey scrum in German lifts

13 Nov 2019

Private equity managers are teaming up to buy Thyssenkrupp’s elevator unit, worth maybe 17 bln euros. That smacks of the ill-fated club deals that epitomised the last buyout boom, although the target’s stable cash flows makes a blowup unlikely. The biggest risk is overpaying.

ArcelorMittal gets convenient alibi for Italexit

8 Nov 2019

The steel giant wants to pull out from an agreed purchase of top European plant Ilva, blaming its loss of legal immunity. Quitting would spare ArcelorMittal the cost of upgrading the toxic site. That’s handy while global steel consumption is seen to be falling.

Big steel can reform its way to a longer life

30 Sep 2019

Rio Tinto will work with China's top producer to make steel greener. From Shell to BHP, resources firms are starting to tackle emissions churned out by oil, coal and the like, after they are sold. Such climate-friendly moves may also keep costs manageable, and an industry going.

Buyout offers exit if Thyssen gets stuck in lift

17 Sep 2019

Advent, Cinven and ADIA are lining up a bid for the German conglomerate’s elevators, the FT says. Thyssenkrupp may prefer trade rival Kone’s greater scope to offer an enticing price. But private equity has less to worry about from the EU’s recently reappointed antitrust chief.