Worthington Steel Inc. (WS) experienced a sharp intraday decline of 8.46%, as the stock plummeted during Friday's trading session.
The sell-off followed news that Worthington Steel intends to enter into a domination and profit and loss transfer agreement with Klöckner & Co SE. According to a company announcement, Worthington Steel GmbH expects to hold 58.78% of Klöckner & Co shares after a recent tender offer, which saw 49.44% of shares tendered by March 26, 2026.
This type of agreement, which requires approval from Klöckner & Co's general meeting, would grant Worthington Steel control over Klöckner & Co and involve the transfer of profits and losses between the entities. Investors appeared to react negatively to this significant corporate action, leading to the steep price drop.