Klöckner Shares Surge 27% on $2.4 Billion Takeover by Worthington Steel
US-based Worthington announces an €11-per-share offer to acquire the German steel distributor, aiming to create a transatlantic industry leader.
Shares of German steel and metals distributor Klöckner & Co (KCO) soared more than 27% after U.S.-based Worthington Steel (NYSE: WS) announced it had signed a business combination agreement for a takeover valued at approximately $2.4 billion.
Under the terms of the deal, Worthington will launch a voluntary public takeover offer to acquire all outstanding shares of Klöckner for €11.00 per share in cash. The news sent Klöckner’s shares, which trade on the Frankfurt Stock Exchange, jumping to €10.97 in Tuesday trading, just shy of the offer price and reflecting strong investor confidence that the transaction will proceed.
The proposed combination marks a significant consolidation move within the global steel sector and a bold strategic expansion for Worthington Steel, an Ohio-based company that recently spun off as an independent entity. The deal aims to create a transatlantic steel processing and distribution powerhouse.
In a move signaling strong alignment, Klöckner’s management and supervisory boards announced their support for the takeover. Crucially, Klöckner’s largest shareholder, SWOCTEM GmbH, which holds approximately 42% of the company's shares, has made a binding commitment to tender its shares into the offer. This backing provides a clear and solid path toward reaching the deal's minimum acceptance threshold of 65% of Klöckner's share capital.
For Worthington Steel, the acquisition is a transformative step. The company expects the combination to create the second-largest steel service center in North America, with combined revenues projected to exceed $9.5 billion. Investors in Worthington also reacted positively, with its shares climbing 3.6% to $38.75 on the New York Stock Exchange.
Worthington forecasts significant financial benefits, projecting annual run-rate synergies of $150 million by fiscal year 2028. The company also stated the acquisition is expected to be “substantially accretive” to its earnings per share within the first full year after closing.
“This transaction is a decisive step to build a leading steel and metals distribution company in North America and Europe,” Klöckner & Co said in a statement. The strategic rationale hinges on combining Worthington’s strong processing capabilities in the U.S. with Klöckner’s extensive distribution network across Europe and North America.
The steel industry has been navigating a complex environment characterized by volatile commodity prices, global oversupply concerns, and the high capital costs associated with decarbonization efforts. This transatlantic deal could provide both companies with enhanced scale, operational efficiencies, and geographic diversification to better compete in the challenging market.
Worthington Steel plans to finance the acquisition through a combination of cash on hand and new debt facilities. The completion of the offer remains subject to customary closing conditions, including regulatory approvals in several jurisdictions. Both companies anticipate the transaction will close in the second half of 2026.