Klöckner & Co Stock Hits Three-Year High as Takeover Endgame Nears

Klöckner & Co shares trade above offer price as investors bet on improved terms via a domination agreement. The deal, set for 2026 completion, may lead to a delisting and squeeze-out.

The share price of German steel distributor Klöckner & Co has surged to its highest level in three years, a clear market bet on a lucrative final chapter in its acquisition by Worthington Steel. With a key deadline approaching, the stock is trading significantly above the initial offer price, signaling investor confidence in a higher final payout.

Shares recently changed hands at 12.26 euros, a notable premium to the 11.00-euro tender offer from US-based Worthington Steel. This gap reflects widespread anticipation of improved compensation terms through a forthcoming domination and profit transfer agreement. Worthington officially announced its intention to pursue such a contract on March 27, 2026, following its successful clearance of a critical ownership threshold.

That milestone was achieved when major shareholder Friedhelm Loh tendered his 41.5 percent stake. This move pushed Worthington’s total holding to 58.78 percent, comfortably surpassing the minimum acceptance level of 57.5 percent. The transaction, valued at 2.1 billion euros, is slated for formal completion in the second half of 2026, pending regulatory approvals.

The remaining minority shareholders now face a strategic decision. The secondary acceptance period, during which they can still tender shares at the 11.00-euro offer price, runs until April 14, 2026. Shortly before this deadline, one investor significantly reduced its position, with its voting rights share falling from 3.30% to just 0.22% due to the return of equity collateral.

The market’s focus, however, has shifted entirely to the legal mechanics of the domination agreement. This contract would legally consolidate the cash flows of both companies and grant Worthington direct authority to issue instructions to Klöckner’s management board. Crucially, it triggers a mandatory, independent company valuation to determine the compensation and potential cash settlement owed to minority investors.

With its 58.78 percent stake, Worthington is expected to secure the necessary shareholder majority to approve the agreement at a future general meeting, a date for which is still pending in 2026. CEO Guido Kerkhoff will remain in his operational role for the time being, and management has explicitly ruled out plant closures or layoffs.

Looking beyond the control agreement, Worthington is explicitly reviewing a delisting from the Frankfurt Stock Exchange post-transaction. Should its shareholding reach the 90 percent mark, the company plans to initiate a squeeze-out of any remaining minority holders. For investors holding out, the clock is ticking as the saga of Klöckner & Co as a publicly traded company appears to be entering its final phase.