BERLIN, April 26 (Reuters) - Thyssenkrupp will sell a 20% stake in its steel business to EP Corporate Group (EPCG), the investment vehicle of Czech billionaire Daniel Kretinsky, as part of its drive to revamp the business, lifting its shares 4% in premarket trade.
"Our goal is a future concept that leads to economic independence and business success for thyssenkrupp Steel," Thyssenkrupp Chairman Miguel Lopez said in a statement on Friday.
The parties are in talks for Kretinsky to buy a further 30% stake, aiming for a 50-50 joint venture, Thyssenkrupp said.
The deal, whose value was not disclosed, is due to close this financial year.
In a statement, Kretinsky called the deal an important contribution to the decarbonisation of the steel industry, adding that "the entire European steel sector will undergo a similar transformation to the energy sector".
Thyssenkrupp has set a goal to switch its steel business, which employs around 27,000 people, to climate-neutral production by 2045, with the help of multi-billion government subsidies.
The German industrial conglomerate recently announced it will cut jobs and reduce capacity at its main Duisburg site, which was a sticking point in talks with Kretinsky and has sparked criticism from the German government.
Thyssenkrupp is revamping its steel business, whose roots extend beyond 200 years, amid weakening demand and competition from cheaper Asian rivals.
Kretinsky, who has been on a European buying spree, is a former investment bank lawyer who built one of Europe's largest energy groups, Energeticky a Prumyslovy Holding (EPH).
Writing by Andrey Sychev; Editing by Sherry Jacob-Phillips and Mark Potter
Source: Reuters