The Limited Times

Now you can see non-English news...

Crisising industrial group: Thyssenkrupp gets out of Dax

2019-09-04T21:43:24.779Z

Thyssenkrupp is leaving Dax after 31 years, making it no longer one of the 30 most valuable stock exchange companies in Germany. It will be replaced in the lead index by the engine manufacturer MTU.




The Essen-based industrial and steel company Thyssenkrupp has to leave the Dax because of its drastically reduced share price. This was announced by Deutsche Börse on Wednesday evening in Frankfurt. The group will be replaced in the lead index by the engine manufacturer MTU. Thyssenkrupp is no longer one of the 30 most valuable stock exchange companies in Germany.

The exit from the top league of stock market values ​​will take effect on 23 September - for the more than 200 years old industrial giant this is a big loss of prestige. "That disappoints us the descent from the Dax, is out of the question," said Thyssenkrupp CEO Guido Kerkhoff. "As a founding member, we would have liked to stick to the lead index." But you have to be honest: "Our performance was too weak, so the walk in the MDax is the logical consequence."

photo gallery


30 pictures

Thyssenkrupp: descent of a giant

ThyssenKrupp has been in crisis for a long time. The financial ceiling is thin - also a result of billions of bad investments in steel mills in Brazil and the USA. The proposed as a liberation steel fusion with the Indian competitor Tata was banned by the EU. Kerkhoff then also dismissed the split into two separate companies.

The entire group has around 160,000 employees worldwide. For employees, the Dax descent has no direct consequences. However, they are affected by the group restructuring, which will result in the cancellation of 6,000 jobs, including 4,000 in Germany.

More on SPIEGEL +

Dominik Asbach / DER SPIEGELThyssenkrupp boss in interview "No crisis was already party"

Index changes are particularly important for funds that exactly copy indices (ETF). It then has to be rebalanced and rebalanced accordingly, which can affect share prices. In the MDax , the second stock market league with 60 members, there are according to experts and also opportunities for recovery. There, the Essenes should be "a very visible and dominant value," said, for example, Dirk Schiereck, Professor of Corporate Finance at the TU Darmstadt.

In his first reaction to the Dax descent, Kerkhoff said, "It's important that we now rebuild the Group and make it more profitable to regain investor confidence, and that's our focus, and we're working hard to do that."

Source: spiegel

You may like

News/Politics 2019-08-31T07:46:22.083Z
Life/Entertain 2019-09-04T21:52:30.507Z
News/Politics 2019-09-05T04:01:24.913Z

Trends 24h

Business 2019-11-13T07:28:52.541Z
Business 2019-11-14T04:10:59.181Z

Latest

© Communities 2019 - Privacy