Salzgitter AG, one of Germany’s leading steelmakers, has terminated discussions with the consortium comprising GP Günter Papenburg Aktiengesellschaft and TSR Recycling GmbH & Co. KG regarding a potential takeover offer. The decision follows a significant divergence in views over the current and future valuation of the company, driven in part by the anticipated positive effects of the German government's new economic policies.
The steelmaker highlighted the impact of its expanded P28 performance program, which aims to achieve €500 million in savings and strengthen Salzgitter's position in the industry. As a result, Salzgitter AG will remain an independent company moving forward.
Gunnar Groebler, CEO of Salzgitter AG, stated: "Under our expanded P28 performance program, we launched additional measures to strengthen our competitiveness."
Earlier this year, the consortium raised its bid for Salzgitter to €18.50 per share, valuing the company at approximately €1.1 billion. However, despite the increased offer, the talks ultimately came to an end due to differing expectations regarding the company's future prospects.
VietnamSteel by Hoa Sen Group
