Published by Global Banking & Finance Review®
Posted on March 2, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleWorthington Steel CEO Geoff Gilmore said the U.S. company has multiple viable acquisition alternatives should its $2.4 billion takeover bid for Germany’s Kloeckner fail, having already secured 53% of shares and needing 65% by the March 12 deadline.
By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSELDORF, March 2 (Reuters) - U.S.-based Worthington Steel would have a decent number of alternative acquisition targets if a $2.4 billion deal to buy German metals distributor Kloeckner & Co fell through, Worthington chief executive Geoff Gilmore told Reuters.
The offer expires on March 12, with Worthington obliged to secure at least 65% of Kloeckner's shares to clinch the deal.
While Gilmore said he was "highly confident" of hitting that goal, having already secured 53% from Kloeckner's major shareholder Swoctem and other tenders, the German firm is one of around 10 targets Worthington has looked at.
"We felt like Kloeckner made the most sense and brought the most synergies, along with positioning us best strategically in the current situation," Gilmore said.
"But that doesn't mean that options two, three, four, and five aren't good options. So we would have good alternatives to pursue in a situation where this does not come to reality."
NORTH AMERICAN METALS SECTOR CONSOLIDATES
The North American metals trading sector is currently subject to substantial consolidation, with Ryerson recently merging with Olympic Steel and Thyssenkrupp looking to divest its materials trading division.
Asked whether Thyssenkrupp's business, which is larger in size, was a possible alternative to Kloeckner, Gilmore said: "I think we'd have better alternatives, more North America-centric U.S.-type opportunities."
Since the offer, made in January, Kloeckner shares have sometimes traded above the 11 euro ($12.90) offer price, reflecting market hopes of a higher bid. But Gilmore said there was no chance of a renegotiation.
"If we can't meet the threshold, we can't get this deal to move forward in the fashion that we want, then the shareholders are going to simply miss out. There's not going to be that opportunity, period."
($1 = 0.8524 euros)
(Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Friederike Heine and Kevin Liffey)
Worthington Steel has identified several alternative acquisition targets to pursue if the Kloeckner & Co deal falls through.
Worthington Steel has already secured 53% of Kloeckner's shares, largely from its major shareholder Swoctem and other tenders.
The deadline for Worthington Steel to secure at least 65% of Kloeckner's shares is March 12.
Kloeckner offered the most synergies and strategic advantages among around 10 targets reviewed by Worthington Steel.
Explore more articles in the Finance category
