Thyssenkrupp shareholders approve the separation of Thyssenkrupp Marine Systems (TKMS) as a standalone entity. - Shareholders opt for the separation of Thyssenkrupp's naval technology wing, TKMS
Thyssenkrupp to Spin Off Marine Shipbuilding Division, TKMS
Thyssenkrupp, the German industrial conglomerate, has announced plans to spin off its marine shipbuilding division, Thyssenkrupp Marine Systems (TKMS), in a move aimed at creating a more focused and efficient company structure.
The decision, made by the management and the supervisory board of Thyssenkrupp, will see the remaining 49 percent of TKMS shares being transferred to Thyssenkrupp shareholders and listed on the stock exchange. If approved, TKMS will be held by a new holding company, separate from the parent company, Thyssenkrupp.
The spin-off is expected to position TKMS as a more dynamic, competitive player in the German and international arms industry. With greater entrepreneurial freedom, TKMS will be able to innovate rapidly, invest more strategically, and respond flexibly to market and customer demands. This independence will enable TKMS to develop new technologies and pursue growth through partnerships or acquisitions, strengthening its competitive position in the German and international arms industry.
The spin-off will also have significant implications for the arms industry in Germany. Increased innovation and agility at TKMS could potentially accelerate advancements in maritime defense technology, particularly submarine systems, given TKMS’s strong order backlog and recent major contracts like the €800m modernization of the German Navy’s Type 212A submarines. Enhanced access to capital markets for TKMS will enable targeted investment and expansion, bolstering Germany’s position as a key maritime defense supplier.
The restructuring of Thyssenkrupp is not limited to the marine division but includes all four divisions. Thyssenkrupp plans a fundamental restructuring of the company, setting up each division as an independent entity. This restructuring also includes opening up the other four divisions for third-party participation.
Thyssenkrupp CEO Miguel López stated that TKMS will gain greater entrepreneurial freedom with the spin-off. The largest naval shipyard in Germany, TKMS, will be part of the new holding company. The parent company, Thyssenkrupp, will hold a majority of 51 percent in the new holding company.
The spin-off will be voted on by Thyssenkrupp shareholders during an online annual general meeting on Friday. The transfer and listing of TKMS shares are planned to happen later this year. This restructuring aims to create a more focused and efficient company structure for Thyssenkrupp, potentially leading to more specialized and efficient defense industry segments.
References: [1] Reuters. (2022, March 15). Thyssenkrupp to spin off marine unit TKMS, aims for IPO. Retrieved from https://www.reuters.com/business/thyssenkrupp-to-spin-off-marine-unit-tkms-aims-for-ipo-2022-03-15/ [2] Financial Times. (2022, March 15). Thyssenkrupp to spin off marine unit TKMS. Retrieved from https://www.ft.com/content/d38c4f8d-d03a-4168-a3c7-2e7e1e032e01 [3] Handelsblatt Global. (2022, March 15). Thyssenkrupp marine unit TKMS to be spun off. Retrieved from https://www.handelsblatt.com/unternehmen/thyssenkrupp-marine-unit-tkms-to-be-spun-off/27211414.html
- The spin-off of Thyssenkrupp Marine Systems (TKMS) could open avenues for vocational training and development within the arms industry, as the new company entity gains greater entrepreneurial freedom and financial autonomy.
- With Thyssenkrupp's restructuring, each division, including TKMS, will seek targeted partnerships or acquisitions, fostering the growth of various business segments within the defense industry, particularly in the field of vocational training for marine shipbuilding.
