Germany’s Salzgitter AG has officially ended takeover negotiations with a consortium comprising GP Günter Papenburg and TSR Recycling. The termination followed unresolved differences over the company’s valuation.
Takeover Talks Collapse
The consortium reportedly offered a price of approximately €18.50 per share. However, Salzgitter and the bidders could not reach an agreement due to divergent expectations about the company’s current and future market value.
Strategic Cost Reduction Plan
In parallel with the decision, Salzgitter has announced a major expansion of its internal savings program. The company has now doubled its cost-reduction target to €500 million, having already achieved €130 million in savings by the end of 2024.
Market Outlook
Despite the collapse of takeover talks, Salzgitter remains optimistic. The company expects demand for steel to grow, supported by Germany’s strategic focus on climate protection, infrastructure upgrades, and defense industry expansion.
This pivot away from external acquisition aligns with Salzgitter’s goal to enhance operational independence, improve financial resilience, and capitalize on the evolving needs of domestic and European steel consumers.
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