On the stock market, the various armed conflicts and the rearmament of European states are felt. Faced with the interest of investors, the German Conglomerate Thyssenkrupp AG, in difficulty, would like a minority part of its TKMS division (submarines, warships) to be introduced on the Frankfurt Stock Exchange between autumn 2025 and the beginning of 2026. A means of restructuring the group, which accuses massive losses in its steering division (Steel Europe) put its workers back to back.
TKMS and its submarines must resume investments
TKMS (which corresponds to Thyssenkrupp Marine Systems), has shipyards in Kiel (Howaldtswerke-Deutsche Werft) and also has Atlas Elektronik, specialist in submarine sensors, sonars and naval robotics. In addition to trade with Germany, TKMS has submarine contracts with Greece, South Korea and Israel. Because of the monstrous losses in steel, its investors in naval construction stagnate and the company loses competitiveness.
Miguel Lopez, the CEO of Thyssenkrupp AG, is at the origin of the IPO project which was presented on Friday August 8 to the shareholders. The latter will be able to maintain control over TKMS since the conglomerate will keep 51 % of the company’s shares. The rest of the 49 % of the new holding company on the financial markets will allow “Generate value in a division called to benefit from the increase in defense expenses”reported Bloomberg.
Five years ago, the conglomerate sold its Thyssenkrupp Elevator Technology division, one of the world leaders in elevators and mechanical stairs) to a consortium for 17.2 billion euros. Today, the group is therefore focusing on Steel Europe for steel industry, Automotive Technology for automotive parts, or Decarbon Technologies for low carbon industrial solutions. The scholarship would be a means for Marine Systems (TKMS) to keep the naval construction activity, and in particular submarines.
“We grant the company the entrepreneurial freedom to act more quickly, to invest more strategic and to extend its leading position”said Miguel Lopez in comments shared by Bloomberg News before the shareholder assembly.
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The State does not want to invest but guarantees “jobs and national security”
Faced with this announcement, the first IG Metall workers’ union demanded the entry of the State into TKMS. A necessary participation to support the activity and guarantee that it remains German, at a time when the arms race is an issue of sovereignty, as well as protectionism. TMKS would be an opportunity to kill two strokes with one stone. “This is the only way to compete in equal arms with our European competitors, all supported by their respective state”commented to Reuters Stephanie Schmoliner, director of IG Metall Kiel-Neumünster and also vice-president of the TKMS supervisory board.
In July, the government had indicated that it did not provide for any equity participation in the short term while providing for a security agreement to be voted to ensure that neither national defense nor jobs are threatened by a split of the division even if it goes through a fellowship. A maneuver that leaves Dubitative Stephanie Schmoliner: “After an IPO, it is no longer possible to control who buys the shares and can thus exert an influence on this strategic company for security”.
In addition, Germany recently announced that it planned to double its budget dedicated to defense, reaching 162 billion euros by 2029. On the stock market, the German company Rheinmetall AG (military vehicles with wheel and caterpillars) had become a star after having seen its course leap 1,700 % since the invasion of Ukraine by Russia.
Bloomberg recalled that its Bloomberg European Defense index had increased by almost 75 % this year 2025, and that the Rheinmetall AG action had further climbed by 170 %. Globally, the MSCI World Aerospace and Defense index increased by 44 % in 2025, well above the overall market performance.
- Thyssenkrupp wants to introduce 49 % of TKMS on the stock market at the end of 2025-early 2026 for its restructuring, retaining 51 %. The objective is to compensate for steel losses and take advantage of the increase in military spending
- TKMS, manufacturer of submarines for several countries, lacks investments and losing competitiveness. The operation aims to give it more means
- IG Metall claims an entry of the State to protect jobs and sovereignty, but the government refuses, promising only national security and job guarantees
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