March 26, 2018 / 8:49 AM / a year ago

Thyssenkrupp eyeing sale of Materials Services unit: Handelsblatt

FILE PHOTO: Flags with the new logo of ThyssenKrupp flutter in the wind outside the headquarters of the German steel maker and multinational conglomerate in Essen, Germany, April 27, 2016. REUTERS/Wolfgang Rattay /File Photo

FRANKFURT (Reuters) - Thyssenkrupp will likely sell its materials trading division as part of a strategic overhaul to be announced in May, German business daily Handelsblatt reported, without identifying its sources.

Thyssenkrupp’s largest division by sales, Materials Services accounted for 13.7 billion euros ($16.97 billion), or nearly a third, of the company’s last full-year group revenue.

A spokesman for Thyssenkrupp declined to comment on the report. Shares in the company were up 1 percent.

Smaller peer Kloeckner & Co has repeatedly expressed interest in Materials Services though its Chief Executive Gisbert Ruehl said last month that the group would likely require a partner to enter into a deal.

At 6.14 billion euros, Kloeckner & Co’s 2017 full-year sales accounted for less than half of those at Materials Services.

Separately, Thyssenkrupp said it was almost done with the due diligence process in its planned steel joint venture with India’s Tata Steel, confirming the signing of the venture was still planned in early 2018.

Reporting by Christoph Steitz and Tom Kaeckenhoff; editing by Jason Neely

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