Finance
Salzgitter to take over HKM steel joint venture, end clash with Thyssenkrupp
Published by Global Banking & Finance Review®
Posted on February 6, 2026
2 min readLast updated: February 6, 2026
Quick Summary
Salzgitter plans to acquire HKM, resolving a dispute with Thyssenkrupp and impacting future steel operations.
Salzgitter to take over HKM steel joint venture, end clash with Thyssenkrupp
Salzgitter's Acquisition of HKM Steel
FRANKFURT, Feb 6 (Reuters) - Salzgitter on Friday said it planned to buy out the co-owners of steel joint venture HKM to become the company's sole owner from mid-2026, potentially ending a spat with Thyssenkrupp over the future of the business.
A solution around HKM, owned by Salzgitter, Thyssenkrupp Steel Europe (TKSE) and France's Vallourec in a 50-30-20 split, might end years of uncertainty over the struggling business that employs 3,000 staff.
It could also remove a hurdle in Thyssenkrupp's ongoing talks to sell its TKSE division to India's Jindal Steel International, with HKM's fate being one of the unsolved issues.
Details of the Acquisition
Under the plans, Salzgitter would buy the stakes of its co-owners for an undisclosed sum and continue HKM as sole owner from June, while also severing HKM's supply ties with TKSE in 2028, four years earlier than currently planned.
Impact on Thyssenkrupp's Business
In a joint statement, Salzgitter and Thyssenkrupp said the agreement depended on a positive assessment of HKM's future commissioned by Salzgitter as well as Vallourec agreeing to sell its stake.
Future of HKM Steel
Vallourec was not immediately available for comment.
(Reporting by Christoph Steitz, Editing by Miranda Murray and Linda Pasquini)
Key Takeaways
- •Salzgitter plans to acquire full ownership of HKM by mid-2026.
- •The acquisition could resolve a long-standing dispute with Thyssenkrupp.
- •HKM's future is crucial for Thyssenkrupp's sale of TKSE to Jindal Steel.
- •Salzgitter aims to sever HKM's supply ties with TKSE by 2028.
- •Vallourec's agreement to sell its stake is pending.
Frequently Asked Questions about Salzgitter to take over HKM steel joint venture, end clash with Thyssenkrupp
1What is a joint venture?
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity while maintaining their separate identities.
2What is an acquisition?
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company.
3What is corporate strategy?
Corporate strategy is the overall plan for a diversified company, outlining how it will create value through its various business units and allocate resources among them.
