By Cristina Gallardo
Thyssenkrupp said it is moving ahead with its plan to spin off its warship business, as talks with the German government for a potential minority stake in the new company continue.
The German industrial group said Monday that the new Thyssenkrupp Marine Systems holding company will be listed on the Frankfurt Stock Exchange, and that shareholders of the parent group will hold a minority interest as a result of the spinoff.
"We are convinced that the marine business can best exploit global growth opportunities by operating as an independent entity," Thyssenkrupp said in a statement. "The aim is to achieve lasting, stable growth and a strong position in the international market for the marine business."
The company's warship business includes naval electronic systems and services, surface vessels and submarines, and Thyssenkrupp has for months explored options for the division. It has evaluated a potential partial sale to U.S. investor Carlyle, which eventually withdrew its interest, and said it was holding talks with the German government.
Last month, Thyssenkrupp's Chief Executive Miguel Lopez said in a podcast interview with the Westdeutsche Allgemeine newspaper that the group wanted to complete the initial public offering before the end of this year.
Talks with the German government for a stake in the business continue, Thyssenkrupp said Monday.
Germany's likely next government coalition struck a deal with the Green Party on Friday for a new special defense fund worth 200 billion euros ($217.57 billion). Berlin and other allies within the North Atlantic Treaty Organization have come under pressure from the U.S. to increase military spending.
The fund needs to be approved by two-thirds of the Bundestag, the lower house of the German parliament, with a vote scheduled for Tuesday.
Extra cash for defense is expected to boost orders for military platforms produced by German defense groups, Thysssenkrupp's naval business included.
"The rising demand in TKMS's core businesses that is forecast for the coming years and the long-term geostrategic developments offer us new growth opportunities that we would like to exploit in the best possible way in an independent position," the company said.
Thyssenkrupp shares were up 5.3% at 9.11 euros in midday trading in Europe.
Write to Cristina Gallardo at cristina.gallardo@wsj.com
(END) Dow Jones Newswires
March 17, 2025 07:39 ET (11:39 GMT)
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