Thyssenkrupp relinquishes blue-chip status

Frankfurt am Main: Struggling German industrial conglomerate Thyssenkrupp is set for ejection from the DAX index of 30 leading shares on the Frankfurt stock exchange, operator Deutsche Boerse said.
The historic Essen-based giant’s shoes will be filled from September 23 by MTU Aero Engines, which makes components for aircraft motors.
Thyssen was a DAX member from the index’s creation in 1987, becoming even weightier after a merger with rival Krupp in 1999.
But its shares have plummeted more than 60 per cent since 2018, with the European Commission’s decision to block its merger with India’s Tata in June worsening the slide.
“There’s no question we’re disappointed to leave the DAX,” chief executive Guido Kerkhoff said.
Metzler bank analyst Pascal Spano judged that Thyssenkrupp “is currently only a shadow of its former self”.
One sign of that is the fact that its elevators division, one of its slew of products from submarines to construction materials, is valued more highly than the business as a whole, at 14 billion euros ($15.4 billion).