< Year back  |  Year forward >
The Thyssen-Krupp logo

The Thyssen-Krupp logo
Source: dpa

Click to enlarge



Hostile take-over!

The strong devour the weak, and not the other way round. But that can happen in the business world - the recently merged Krupp-Hoesch Group announces on 18 March 1997 its plans to continue expanding. bulletKrupp wants to swallow up its competitor Thyssen!

Like in the Wild West, says Thyssen, the victim of a hostile take-over bid. The acquisition only makes economic sense if tens of thousands of jobs are shed.

By 1996 both companies had seen their profits from steel halved - Krupp down to 208 million marks, Thyssen to around 350 million. Thyssen is the stronger of the two, but Krupp is offering DM 435 per Thyssen share; that's 25% above the stock-market listing!

Krupp seeks to expand its market power in areas where both companies operate, especially flat steel and automobile parts. In other fields, Thyssen's operations cover a much broader range of products and services. Thyssen has a stronger market presence.

Although Krupp's bid runs into trouble at first, the hostile take-over does succeed in 1999. Krupp has got rid of a competitor in the hard-fought bulletsteel market.

Dirk Bitzer

Bookmark article

When it comes to the crunch

  bullet go on