Thyssenkrupp is considering an initial public offering (IPO) or a deal with a special purpose acquisition company (SPAC) for its hydrogen business, Chief Executive Martina Merz said on Tuesday. A 66-34 joint venture of Thyssenkrupp and Italy's De Nora , Thyssenkrupp Uhde Chlorine Engineers (TKUCE) is the world's largest supplier of chlor-alkali membrane technologies used to produce hydrogen.
FRANKFURT (Reuters) -Thyssenkrupp's closely watched cash flow plunged deeper into the red in the second quarter, hit by restructuring costs and investments that overshadowed a guidance upgrade on the back of stronger demand and prices. Shares in the German conglomerate fell as much as 9.6% after the group said that negative free cash flow before mergers and acquisitions (M&S) widened to 750 million euros ($911 million), worse than analysts at Jefferies and JP Morgan had expected. Returning to positive cash flow has been one of the key targets of the submarines-to-bearings group in its efforts to win back confidence among investors and to prove it has a sustainable business model.
Thyssenkrupp's steel unit must cut costs to reach a point where it no longer needs financial support from the group, Chief Executive Martina Merz said in an internal memo to staff seen by Reuters on Friday. Her remarks come after the group cancelled an extraordinary supervisory board meeting originally scheduled for March 12 to decide whether to sell the steel division to Britain's Liberty Steel. Thyssenkrupp last month terminated sale talks, saying the two sides were far apart on issues like value and funding.