Published by Global Banking & Finance Review®
Posted on August 8, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleThyssenkrupp shareholders approve defence division spin-off to capture value amid rising military spending, with government influence retained.
By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSELDORF (Reuters) -Thyssenkrupp shareholders on Friday approved a planned spin-off of its defence division, the conglomerate's latest restructuring move, aimed at fully capturing the value of the division amid rising military spending in Europe.
The order book of Thyssenkrupp's TKMS division - which makes submarines, frigates and develops mine-sweeping technologies - has swollen to more than 18 billion euros ($21 billion) from 11.7 billion at the end of September last year.
That has in turn boosted shares of its parent, which have more than doubled year-to-date, while more ambitious defence spending plans have also benefited European defence peers more broadly.
Thyssenkrupp plans to spin off 49% of TKMS to its existing shareholders while keeping the remaining stake.
The Alfried Krupp von Bohlen and Halbach foundation, Thyssenkrupp's largest shareholder with a 21% stake, welcomed the vote, saying the spin-off of TKMS opened up new business opportunities, without elaborating.
Thyssenkrupp said on Friday it expected the spin-off and separate listing of TKMS to be formalised in mid-October.
Shares in the company traded 3% higher at 1313 GMT following the vote.
Last month, Berlin reached a preliminary agreement with Thyssenkrupp that guarantees the government will retain influence at TKMS, as it seeks to keep a certain level of control over strategic defence assets.
Labour unions have called for Berlin to take a blocking minority in TKMS to ensure stakes in the business do not fall into the wrong hands, but the government has so far not done so.
Stephanie Schmoliner of labour union IG Metall, who also serves as deputy chairman of TKMS's supervisory board, repeated these demands on Friday, saying a government stake was "essential".
The increase in defence spending comes in response to Russia's invasion of Ukraine, and as U.S. President Donald Trump has called on NATO's European members to raise their military budgets.
($1 = 0.8583 euros)
(Reporting by Christoph Steitz and Tom Kaeckenhoff. Editing by Elaine Hardcastle and Mark Potter)
A spin-off is a corporate action where a company creates a new independent company by selling or distributing new shares. This often aims to unlock value and focus on core operations.
Shareholder value refers to the financial worth that shareholders gain from owning shares in a company, typically measured by stock price appreciation and dividends.
Military spending is the amount of financial resources dedicated by a nation to maintain and equip its armed forces, including salaries, equipment, and operations.
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