The dispute at Thyssenkrupp between IG Metall and the Group Executive Board over the planned steel joint venture with Czech billionaire Daniel Kretinsky's energy holding EPCG is escalating.

The Group announced on Wednesday that it would not fully finance the planned joint venture in the long term. Even after Kretinsky's participation of 20 percent has been completed, the steel business will continue to be financed by thyssenkrupp for the time being. "In the event of a 50/50 joint venture, independent financing with supporting contributions from both partners is being sought." Such independent financing would be determined by the shareholders on the basis of the new business plan. In the negotiations with Kretinsky for the remaining 30 percent, a best/fair owner agreement will be sought.

IG Metall had previously accused the Group Executive Board led by CEO Miguel Lopez of wanting to get rid of the steel business at the expense of the workforce and the public and of shirking responsibility. "Mr. Kretinsky's entry opens a Pandora's box from which only bad things can come," criticized Jürgen Kerner, Vice-Chairman of IG Metall, in a leaflet obtained by the Reuters news agency. It is about much more than just the 20 percent. The so-called domination and profit transfer agreement (BGAV) between the AG and the steel subsidiary was about to come to an end as a result of the Kretinsky deal. There would be a financing requirement in the billions. Restructuring alone would cost one billion euros, excluding redundancies for operational reasons. A further three billion euros would be needed to provide the steel company with the necessary financial resources. "A spin-off without this funding would be the road to certain death."

IG Metall and works councils have accused Lopez of a lack of transparency in the negotiations with Kretinsky, which the manager has denied.

has rejected. "There have never been compulsory redundancies at Stahl," the company emphasized. It is our declared aim to continue to avoid this." It goes without saying that thyssenkrupp also adheres to all existing collective agreements. "However, only a successful and profitable company can offer secure and sustainable jobs in the long term."

(Report by Tom Käckenhoff, Christoph Steitz; edited by Ralf Banser. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).