Thyssenkrupp shareholders are poised to make a pivotal decision today, voting on the spin-off of its naval division, TKMS—Germany’s largest shipyard. The move, expected to finalize by mid-October, accelerates the conglomerate’s restructuring. TKMS, a global leader in non-nuclear submarines and frigate manufacturing, boasts an order backlog exceeding €18 billion, up over 50% since September, solidifying its status as Thyssenkrupp’s crown jewel. While 49% of TKMS shares will be listed, the parent company retains control through a unique AG & Co. KGaA structure, ensuring dominance even if its stake drops to 30%. A pending security agreement with the German government grants veto rights for stakes above 5% and a supervisory board seat, underscoring TKMS’s strategic importance.
Radical Restructuring Ahead
The TKMS spin-off marks the first step in Thyssenkrupp’s broader transformation, with plans to decentralize all five business units and attract external investors. A 50:50 steel joint venture with a Czech conglomerate is already in the works. The listing aims to grant TKMS greater autonomy, enabling independent investments and transparent valuation. Shareholders’ approval today could reshape the company’s trajectory, signaling a shift from conglomerate sprawl to focused specialization.
