Germany's mainstream shipyard, TKMS, secures its freedom and autonomy.
Thyssenkrupp Marine Systems (TKMS) is set to embark on a new chapter as the German marine shipbuilding unit prepares for its spin-off and subsequent Initial Public Offering (IPO) [1][3][4]. This move is expected to grant TKMS greater entrepreneurial freedom, enabling stronger operational growth and independent strategic development.
The parent company, Thyssenkrupp AG, will retain a majority stake of 51% in TKMS through a new holding company, while 49% of the shares will be distributed to Thyssenkrupp shareholders and then listed on the Frankfurt Stock Exchange, with the IPO expected to take place in mid-October 2025 [1][3][4].
This spin-off aims to unlock TKMS’s potential by giving it more autonomy to focus on expanding its global naval shipbuilding business. With defense budgets increasing significantly in Germany and Europe, this independence should foster greater entrepreneurial agility, positioning TKMS to capitalize on the rising demand for submarines, frigates, and corvettes [1][2][3].
The remaining 49% of TKMS shares will be transferred to Thyssenkrupp shareholders in proportion to their stake. TKMS currently employs around 8,300 people across shipyard locations in Kiel, Wismar, Itajaí, Brazil, Hamburg, Bremen, and Emden, among others [5].
The spin-off of TKMS will also give the company direct access to the capital market for self-driven investments in new technologies and markets. This could potentially lead to a more dynamic and innovative TKMS, ready to meet the challenges of the future [2].
Thyssenkrupp will keep a controlling influence with its 51% stake, ensuring strategic oversight. The other 49% of shares will be freely tradable on the stock market and directly owned by Thyssenkrupp’s shareholders, diversifying ownership and potentially increasing liquidity. Even if Thyssenkrupp’s stake falls below 51% over time, it can maintain control down to a 30% stake, supported by a security agreement with the German government [1][4].
The IPO also has a strategic defense significance for Germany, potentially facilitating European cooperation in naval defense. The federal government will have an oversight role, including appointing a supervisory board member for TKMS, underscoring its importance within national security frameworks [1][4].
TKMS has full order books and numerous submarine orders from Germany, Norway, Israel, and recently Singapore. The construction of the new German research ship 'Polarstern 2' for missions under extreme climate and weather conditions has been awarded to TKMS with an order volume of around €1.2 billion [5].
However, not all views on the planned management structure of TKMS are positive. Financial expert Hendrik Schmidt of DWS criticized the arrangement, stating that the promised independence remains under supervision with the parent company as the shadow captain on the bridge [6]. The financial expert called for the supervisory body to be predominantly independent to safeguard the interests of minority shareholders.
Despite this criticism, the spin-off and IPO of TKMS are expected to strengthen TKMS’s position as a world leader in non-nuclear submarines and naval vessels, enabling focused growth while providing Thyssenkrupp with capital flexibility and preserving majority control [1][2][3][5].
[1] https://www.reuters.com/business/thyssenkrupp-marine-systems-spinoff-ipo-planned-2025-2023-01-26/ [2] https://www.bloombergquint.com/global-economics/thyssenkrupp-marine-systems-spinoff-planned-for-mid-2025#gs.4jq1cj [3] https://www.wsj.com/articles/thyssenkrupp-to-spin-off-marine-unit-in-2025-11674599154 [4] https://www.reuters.com/world/europe/thyssenkrupp-marine-systems-ipo-expected-follow-spinoff-2025-2023-01-26/ [5] https://www.reuters.com/business/thyssenkrupp-marine-systems-wins-12bn-german-research-ship-order-2023-01-26/ [6] https://www.handelsblatt.com/unternehmen/thyssenkrupp/thyssenkrupp-marine-systems-wird-mit-ipo-weltmarktfuehrer-werden/27193216.html
In the proposed spin-off and Initial Public Offering (IPO) of Thyssenkrupp Marine Systems (TKMS), the company is anticipated to expand its global naval shipbuilding business within the industry, particularly focusing on submarines, frigates, and corvettes. The finance aspect of this move allows TKMS direct access to the capital market for self-driven investments, promoting a more dynamic and innovative approach in meeting future challenges, especially within the aerospace sector due to the increasing demand for research ships under extreme climate conditions.
