Acquisition of Klöckner & Co Nears Finalization as Threshold is Lowered

Worthington Steel secures 56.9% of Klöckner shares, nearing the 57.5% acceptance threshold. The deal is backed by management as Klöckner reports strong 2025 EBITDA growth.

The takeover of German steel distributor Klöckner & Co by US-based Worthington Steel is on the verge of completion. The American conglomerate has already secured 56.9% of shares, moving it tantalizingly close to the finish line. A recent, crucial adjustment saw the minimum acceptance threshold for the offer lowered from 65% to 57.5%. With management holdings of approximately 4.5% still expected to be tendered, the path to surpassing the required threshold appears clear.

The acceptance period for the revised offer is set to conclude on March 26. Both Klöckner's management board and its supervisory board continue to endorse the deal, recommending shareholders accept the terms.

Strong Operational Performance Provides Momentum

As the deadline approaches, Klöckner has reported robust operational figures for 2025. The company's EBITDA climbed to €171 million, a significant increase from €136 million the previous year. Free cash flow also saw a marked improvement, reaching €105 million.

This financial strength coincides with a strategic portfolio overhaul. The company has divested eight basic US distribution sites along with its Brazilian operations. Proceeds from these sales are being channeled into higher-margin ventures. These include an aluminum flat-rolling mill in Columbus, Mississippi, and a laser blanking line in Mexico, which is scheduled to commence operations in the second quarter of 2026.

Looking ahead to 2026, Klöckner anticipates a further substantial rise in EBITDA compared to the prior year. This forecast comes despite the recent divestments, with sales volumes expected to remain largely stable.

Notable Shifts in Shareholder Registry

Significant repositioning is evident among the company's institutional investors. JPMorgan has reduced its stake below the 5% reporting threshold, now holding 4.80%. Moving in the opposite direction, DWS Investment GmbH nearly doubled its position. Its holding increased to 6.97%, up from a previous 3.83%. A mandatory regulatory filing cited the receipt of share collateral as the reason for this increase.

Klöckner's share price has advanced approximately 44% since the start of the year, trading near its 52-week high of €11.92. Following the completion of the acquisition, the existing executive board is expected to continue leading the company. According to corporate statements, no site closures or staff layoffs are currently planned.