Salzgitter AG | Europe HKM Deal Closed

Research evidence excerpt

Salzgitter AG | Europe HKM Deal Closed

Update

July 9, 2026 11:02 AM GMT

Morgan Stanley & Co. International plc+MSalzgitter AG | Europe Alain Gabriel, CFA

Equity Analyst

HKM Deal Closed Alain.Gabriel@MorganStanley.comIoannis Masvoulas, CFA +44 20 7425-8959

Ioannis.Masvoulas@morganstanley.com +44 20 7425-0427

What's new? Salzgitter AG has signed a final agreement with thyssenkrupp Steel

Adahna Ekoku

Europe and Vallourec to acquire their remaining stakes in Hüttenwerke Krupp Equity Analyst

Mannesmann (HKM), with share transfer effective today (9 July 2026). This makes Adahna.Ekoku@morganstanley.com +44 20 7425-0578

Ferdinand Huber

the Duisburg integrated steelworks a wholly owned subsidiary (Salzgitter already Research Associate

held 30%; the deal covers the remaining 70% split between thyssenkrupp at 50% Ferdinand.Huber@morganstanley.com +44 20 7677-2702

and Vallourec at 20%). The transaction follows the February key-issues paper and Salzgitter AG (SZGG.DE, SZG GY)

EU antitrust clearance in May 2026. Carbon Steel | Germany

Stock Rating Overweight

High level plans, but short on financial details. The press release laid out high-

Industry View In-Line

level details of the rightsizing plan: crude steel capacity will be reduced to ~2mtpa Price target €67.50

Shr price, close (Jul 8, 2026) €49.36

(from ~4.2mtpa nameplate), headcount cut from ~3,000 to ~1,000 long-term in a 52-Week Range €67.60-20.34

socially compatible manner, and an EAF eventually developed to lower site CO₂ Mkt cap, curr (mn) €2,818

Net debt (12/26e) (mn)* €1,264

emissions ~90%. Financial terms remain under non-disclosure; we expect P&L and EV, curr (mn)* €5,100

balance-sheet quantification with the 11 August 1H26 results. * = GAAP or approximated based on GAAP

Implications for Salzgitter.