Thyssenkrupp’s €3.27 Billion Elevator Payoff and a Broken Steel Deal: The Twin Forces Reshaping the Conglomerate

Thyssenkrupp is navigating a moment of profound transformation, with two vastly different financial stories unfolding in parallel. On one side, a windfall from the sale of its elevator business promises billions; on the other, the collapse of a steel partnership forces a more solitary path forward. The market has taken notice, sending the stock up roughly 25% over the past month.

The abandoned talks with Jindal Steel International over a stake in Thyssenkrupp Steel Europe mark a significant shift in strategy. Both sides have paused negotiations after the original assumptions underpinning the deal shifted dramatically in recent months. The company points to a newly signed collective bargaining agreement with IG Metall, a deal for the Duisburg-South site, and a European regulatory environment that has turned more favorable than anticipated. Rather than seeking an external partner, management now aims to restructure the steel unit independently, cutting production capacity to around nine million tonnes. Blast furnace 9 is slated for shutdown early next fiscal year, with furnace 8 to follow once a new direct reduction plant comes online.

Yet the steel division remains a drag on the group’s finances. For the 2026 fiscal year, the board expects a net loss of up to €800 million, with the first quarter alone showing heavy charges tied to job cuts. The broader plan envisions eventually spinning off individual segments, transforming Thyssenkrupp into a pure financial holding.

Should investors sell immediately? Or is it worth buying Thyssenkrupp?

The elevator business tells a very different story. Kone has announced its intention to acquire TK Elevator in a deal valued at €29.4 billion, one of the largest European takeovers in recent memory. Thyssenkrupp’s 16.2% stake, carried on its books at roughly €1.1 billion, is set to generate total consideration of €3.27 billion, according to calculations by JPMorgan. That breaks down into €0.8 billion in cash and €2.5 billion in Kone shares. Thyssenkrupp itself has not commented on those figures. The transaction is not expected to close before the second quarter of 2027, pending regulatory approvals.

The stock closed at €10.65 on Thursday, comfortably above its 200-day moving average, and traded at €10.64 on Friday, slightly lower on the day. Analysts are adjusting their views accordingly. Morgan Stanley lifted its price target to €10.60, while Deutsche Bank set a more ambitious target of €14.50, praising the group’s new strategic direction.

All eyes now turn to May 12, 2026, when Thyssenkrupp releases its second-quarter results. CEO Miguel Ángel López Borrego is expected to provide further details on the restructuring during the subsequent analyst call. The operating numbers will either validate the turnaround narrative or amplify the internal dissent that has been building ahead of key supervisory board meetings.

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