Company:ThyssenKrupp

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Thyssenkrupp AG
TypeAktiengesellschaft
FWB: TKA
Short description: Stock exchange in the City of London
London Stock Exchange
Arms
Arms
TypeStock exchange
LocationCity of London, England, United Kingdom
Founded30 December 1801; 224 years ago (1801-12-30)
OwnerLondon Stock Exchange Group
Key people
CurrencySterling (most primary listings; stock prices are quoted in pence rather than pounds)
No. of listings1,918 issuers [1]
Market capUSD$3.18 trillion (as of August 2023)[2]
Indices
  • FTSE 100 Index
  • FTSE 250 Index
  • FTSE 350 Index
  • FTSE SmallCap Index
  • FTSE All-Share Index
Website{{{1}}}

London Stock Exchange (LSE) is a stock exchange in the City of London, England , United Kingdom. As of August 2023, the total market value of all companies trading on the LSE stood at $3.18 trillion.[3] Its current premises are situated in Paternoster Square close to St Paul's Cathedral in the City of London. Since 2007, it has been part of the London Stock Exchange Group (LSEG (LSE: [Script error: No such module "Stock tickers/LSE". LSEG])).[4] The LSE is the most-valued stock exchange in Europe as of 2023.[5] According to the 2020 Office for National Statistics report, approximately 12% of UK-resident individuals reported having investments in stocks and shares.[6] According to the 2020 Financial Conduct Authority (FCA) report, approximately 15% of UK adults reported having investments in stocks and shares.[7]

History

Coffee House

The Royal Exchange had been founded by English financier Thomas Gresham and Sir Richard Clough on the model of the Antwerp Bourse. It was opened by Elizabeth I of England in 1571.[8][9]

During the 17th century, stockbrokers were not allowed in the Royal Exchange due to their rude manners. They had to operate from other establishments in the vicinity, notably Jonathan's Coffee-House. At that coffee house, a broker named John Castaing started listing the prices of a few commodities, such as salt, coal, paper, and exchange rates in 1698. Originally, this was not a daily list and was only published a few days of the week.[10]

This list and activity was later moved to Garraway's coffee house. Public auctions during this period were conducted for the duration that a length of tallow candle could burn; these were known as "by inch of candle" auctions. As stocks grew, with new companies joining to raise capital, the royal court also raised some monies. These are the earliest evidence of organised trading in marketable securities in London.

Royal Exchange

After Gresham's Royal Exchange building was destroyed in the Great Fire of London, it was rebuilt and re-established in 1669. This was a move away from coffee houses and a step towards the modern model of stock exchange.[11]

The Royal Exchange housed not only brokers but also merchants and merchandise. This was the birth of a regulated stock market, which had teething problems in the shape of unlicensed brokers. In order to regulate these, Parliament passed an Act in 1697 that levied heavy penalties, both financial and physical, on those brokering without a licence. It also set a fixed number of brokers (at 100), but this was later increased as the size of the trade grew. This limit led to several problems, one of which was that traders began leaving the Royal Exchange, either by their own decision or through expulsion, and started dealing in the streets of London. The street in which they were now dealing was known as 'Exchange Alley', or 'Change Alley'; it was suitably placed close to the Bank of England. Parliament tried to regulate this and ban the unofficial traders from the Change streets.

Traders became weary of "bubbles" when companies rose quickly and fell, so they persuaded Parliament to pass a clause preventing "unchartered" companies from forming.

After the Seven Years' War (1756–1763), trade at Jonathan's Coffee House boomed again. In 1773, Jonathan, together with 150 other brokers, formed a club and opened a new and more formal "Stock Exchange" in Sweeting's Alley. This now had a set entrance fee, by which traders could enter the stock room and trade securities. It was, however, not an exclusive location for trading, as trading also occurred in the Rotunda of the Bank of England. Fraud was also rife during these times and in order to deter such dealings, it was suggested that users of the stock room pay an increased fee. This was not met well and ultimately, the solution came in the form of annual fees and turning the Exchange into a Subscription room.

The Subscription room created in 1801 was the first regulated exchange in London, but the transformation was not welcomed by all parties. On the first day of trading, non-members had to be expelled by a constable. In spite of the disorder, a new and bigger building was planned, at Capel Court.

William Hammond laid the first foundation stone for the new building on 18 May. It was finished on 30 December when "The Stock Exchange" was incised on the entrance.

First Rule Book

London Stock Exchange in 1810

In the Exchange's first operating years, on several occasions there was no clear set of regulations or fundamental laws for the Capel Court trading. In February 1812, the General Purpose Committee confirmed a set of recommendations, which later became the foundation of the first codified rule book of the Exchange. Even though the document was not a complex one, topics such as settlement and default were, in fact, quite comprehensive.

With its new governmental commandments[12] and increasing trading volume, the Exchange was progressively becoming an accepted part of the financial life in the city. In spite of continuous criticism from newspapers and the public, the government used the Exchange's organised market (and would most likely not have managed without it) to raise the enormous amount of money required for the wars against Napoleon.

Foreign and regional exchanges

After the war and facing a booming world economy, foreign lending to countries such as Brazil, Peru and Chile was a growing market. Notably, the Foreign Market at the Exchange allowed for merchants and traders to participate, and the Royal Exchange hosted all transactions where foreign parties were involved. The constant increase in overseas business eventually meant that dealing in foreign securities had to be allowed within all of the Exchange's premises.

Just as London enjoyed growth through international trade, the rest of Great Britain also benefited from the economic boom. Two other cities, in particular, showed great business development: Liverpool and Manchester. Consequently, in 1836 both the Manchester and Liverpool stock exchanges were opened. Some stock prices sometimes rose by 10%, 20% or even 30% in a week. These were times when stockbroking was considered a real business profession, and such attracted many entrepreneurs. Nevertheless, with booms came busts, and in 1835 the "Spanish panic" hit the markets, followed by a second one two years later.

The Exchange before the World Wars

Debenture of The Stock Exchange, issued 1 January 1899.

By June 1853, both participating members and brokers were taking up so much space that the Exchange was now uncomfortably crowded, and continual expansion plans were taking place. Having already been extended west, east, and northwards, it was then decided the Exchange needed an entire new establishment. Thomas Allason was appointed as the main architect, and in March 1854, the new brick building inspired from the Great Exhibition stood ready. This was a huge improvement in both surroundings and space, with twice the floor space available.

By the late 1800s, the telephone, ticker tape, and the telegraph had been invented. Those new technologies led to a revolution in the work of the Exchange.

First World War

Stock certificate of the London Stock Exchange, issued on 31 March 1920, declared as a qualification share. The capital of the Exchange from its incorporation consisted of 20,000 shares held only by its members, with trustees and directors required to hold 10 qualification shares.
Stock certificate of the London Stock Exchange, issued on 31 March 1920, declared as a qualification share. The capital of the Exchange from its incorporation consisted of 20,000 shares held only by its members, with trustees and directors required to hold 10 qualification shares.

As the financial centre of the world, both the City and the Stock Exchange were hit hard by the outbreak of World War I in 1914. Due to fears that borrowed money was to be called in and that foreign banks would demand their loans or raise interest, prices surged at first. The decision to close the Exchange for improved breathing space and to extend the August Bank Holiday to prohibit a run on banks, was hurried through by the committee and Parliament, respectively. The Stock Exchange ended up being closed from the end of July until the New Year, causing street business to be introduced again, as well as the "challenge system".

The Exchange was set to open again on 4 January 1915 under tedious restrictions: transactions were to be in cash only. Due to the limitations and challenges on trading brought by the war, almost a thousand members quit the Exchange between 1914 and 1918. When peace returned in November 1918, the mood on the trading floor was generally cowed. In 1923, the Exchange received its own coat of arms, with the motto Dictum Meum Pactum, My Word is My Bond.

Second World War

In 1937, officials at the Exchange used their experiences from World War I to draw up plans for how to handle a new war. The main concerns included air raids and the subsequent bombing of the Exchange's perimeters, and one suggestion was a move to Denham, Buckinghamshire. This however never took place. On the first day of September 1939, the Exchange closed its doors "until further notice" and two days later World War II was declared. Unlike in the prior war, the Exchange opened its doors again six days later, on 7 September.

As the war escalated into its second year, the concerns for air raids were greater than ever. Eventually, on the night of 29 December 1940, one of the greatest fires in London's history took place. The Exchange's floor was hit by a clutch of incendiary bombs, which were extinguished quickly. Trading on the floor was now drastically low and most was done over the phone to reduce the possibility of injuries.

The Exchange was only closed for one more day during wartime, in 1945 due to damage from a V-2 rocket. Nonetheless, trading continued in the house's basement.

Post-war

Trading floor in 1955

After decades of uncertain if not turbulent times, stock market business boomed in the late 1950s. This spurred officials to find new, more suitable accommodation. The work on the new Stock Exchange Tower began in 1967. The Exchange's new 321 feet (98 metres) high building had 26 storeys with council and administration at the top, and middle floors let out to affiliate companies. Queen Elizabeth II opened the building on 8 November 1972; it was a new City landmark, with its 23,000 sq ft (2,100 m2) trading floor.

The Stock Exchange Tower pictured from atop the National Westminster Tower in 1983

1973 marked a year of changes for the Stock Exchange. First, two trading prohibitions were abolished. A report from the Monopolies and Mergers Commission recommended the admittance of both women and foreign-born members on the floor. Second, in March the London Stock Exchange formally merged with the eleven British and Irish regional exchanges, including the Scottish Stock Exchange.[13] This expansion led to the creation of a new position of Chief Executive Officer; after an extensive search this post was given to Robert Fell. There were more governance changes in 1991, when the governing Council of the Exchange was replaced by a Board of Directors drawn from the Exchange's executive, customer, and user base; and the trading name became "The London Stock Exchange".

FTSE 100 Index (pronounced "Footsie 100") was launched by a partnership of the Financial Times and the Stock Exchange on 3 January 1984. This turned out to be one of the most useful indices of all, and tracked the movements of the 100 leading companies listed on the Exchange.

IRA bombing

On 20 July 1990, a bomb planted by the Provisional Irish Republican Army (IRA) exploded in the men's toilets behind the visitors' gallery. The area had already been evacuated and nobody was injured.[14] About 30 minutes before the blast at 8:49 a.m., a man who said he was a member of the IRA told Reuters that a bomb had been placed at the exchange and was about to explode. Police officials said that if there had been no warning, the human toll would have been very high.[15] The explosion ripped a hole in the 23-storey building in Threadneedle Street and sent a shower of glass and concrete onto the street.[16] The long-term trend towards electronic trading platforms reduced the Exchange's attraction to visitors, and although the gallery reopened, it was closed permanently in 1992.

"Big Bang"

The biggest event of the 1980s was the sudden de-regulation of the financial markets in the UK in 1986. The phrase "Big Bang" was coined to describe measures, including abolition of fixed commission charges and of the distinction between stockjobbers and stockbrokers on the London Stock Exchange, as well as the change from an open outcry to electronic, screen-based trading.

In 1995, the Exchange launched the Alternative Investment Market, the AIM, to allow growing companies to expand into international markets. Two years later, the Electronic Trading Service (SETS) was launched, bringing greater speed and efficiency to the market. Next, the CREST settlement service was launched. In 2000, the Exchange's shareholders voted to become a public limited company, London Stock Exchange plc. London Stock Exchange also transferred its role as UK Listing Authority to the Financial Services Authority (FSA-UKLA).

EDX London, an international equity derivatives business, was created in 2003 in partnership with OM Group. The Exchange also acquired Proquote Limited, a new generation supplier of real-time market data and trading systems.

Paternoster Square; LSEG occupies the building that takes up much of the right side of this picture.
London Stock Exchange office interior at Paternoster Square

The old Stock Exchange Tower became largely redundant with Big Bang, which deregulated many of the Stock Exchange's activities: computerised systems and dealing rooms replaced face-to-face trading. In 2004, London Stock Exchange moved to a brand-new headquarters in Paternoster Square, close to St Paul's Cathedral.

In 2007, the London Stock Exchange merged with Borsa Italiana, creating London Stock Exchange Group (LSEG). The Group's headquarters are in Paternoster Square.

The Stock Exchange in Paternoster Square was the initial target for the protesters of Occupy London on 15 October 2011. Attempts to occupy the square were thwarted by police.[17] Police sealed off the entrance to the square as it is private property, a High Court injunction having previously been granted against public access to the square.[18] The protesters moved nearby to occupy the space in front of St Paul's Cathedral.[19] The protests were part of the global Occupy movement.

On 25 April 2019, the final day of the Extinction Rebellion disruption in London, 13 activists glued themselves together in a chain, blocking the entrances of the Stock Exchange.[20][21] The protesters were all later arrested on suspicion of aggravated trespass.[21] Extinction Rebellion had said its protesters would target the financial industry "and the corrosive impacts of the ... sector on the world we live in" and activists also blocked entrances to HM Treasury and the Goldman Sachs office on Fleet Street.[22]

Activities

Primary markets

There are two main markets on which companies trade on the LSE: the main market and the alternative investment market.

Main Market

The main market is home to over 1,300 large companies from 60 countries.[23] The FTSE 100 Index ("footsie") is the main share index of the 100 most highly capitalised UK companies listed on the Main Market.[24]

Alternative Investment Market

The Alternative Investment Market is LSE's international market for smaller companies. A wide range of businesses including early-stage, venture capital-backed, as well as more-established companies join AIM seeking access to growth capital. The AIM is classified as a Multilateral Trading Facility (MTF) under the 2004 MiFID directive, and as such it is a flexible market with a simpler admission process for companies wanting to be publicly listed.[25]

Secondary markets

The securities available for trading on London Stock Exchange:[26]

Post trade

Through the Exchange's Italian arm, Borsa Italiana, the London Stock Exchange Group as a whole offers clearing and settlement services for trades through CC&G (Cassa di Compensazione e Garanzia) and Monte Titoli.[27][28] is the Groups Central Counterparty (CCP) and covers multiple asset classes throughout the Italian equity, derivatives and bond markets. CC&G also clears Turquoise derivatives. Monte Titoli (MT) is the pre-settlement, settlement, custody and asset services provider of the Group. MT operates both on-exchange and OTC trades with over 400 banks and brokers.

Technology

London Stock Exchange's trading platform is its own Linux-based edition named Millennium Exchange.[29]

Their previous trading platform TradElect was based on Microsoft's .NET Framework, and was developed by Microsoft and Accenture. For Microsoft, LSE was a good combination of a highly visible exchange and yet a relatively modest IT problem.[30]

Despite TradElect only being in use for about two years,[31] after suffering multiple periods of extended downtime and unreliability[32][33] the LSE announced in 2009 that it was planning to switch to Linux in 2010.[34][35] The main market migration to MillenniumIT technology was successfully completed in February 2011.[36]

LSEG provides high-performance technology, including trading, market surveillance and post-trade systems, for over 40 organisations and exchanges, including the Group's own markets. Additional services include network connectivity, hosting and quality assurance testing. MillenniumIT, GATElab and Exactpro are among the Group's technology companies.[37]

The LSE facilitates stock listings in a currency other than its "home currency". Most stocks are quoted in GBP but some are quoted in EUR while others are quoted in USD.

Mergers and acquisitions

On 3 May 2000, it was announced that the LSE would merge with the Deutsche Börse; however this fell through.[38]

On 23 June 2007, the London Stock Exchange announced that it had agreed on the terms of a recommended offer to the shareholders of the Borsa Italiana S.p.A. The merger of the two companies created a leading diversified exchange group in Europe. The combined group was named the London Stock Exchange Group, but still remained two separate legal and regulatory entities. One of the long-term strategies of the joint company is to expand Borsa Italiana's efficient clearing services to other European markets.

In 2007, after Borsa Italiana announced that it was exercising its call option to acquire full control of MBE Holdings; thus the combined Group would now control Mercato dei Titoli di Stato, or MTS. This merger of Borsa Italiana and MTS with LSE's existing bond-listing business enhanced the range of covered European fixed income markets.

London Stock Exchange Group acquired Turquoise (TQ), a Pan-European MTF, in 2009.[39]

On 9 October 2020, London Stock Exchange agreed to sell the Borsa Italiana (including Borsa's bond trading platform MTS) to Euronext for €4.3 billion (£3.9 billion) in cash.[40] Euronext completed the acquisition of the Borsa Italiana Group on 29 April 2021 for a final price of €4,444 million.[41]

On 12 Dec 2022, Microsoft bought a nearly 4% stake in LSE (London Stock Exchange Group) as part of a ten-year cloud deal.[42]

NASDAQ bids

In December 2005, London Stock Exchange rejected a £1.6 billion takeover offer from Macquarie Bank. London Stock Exchange described the offer as "derisory", a sentiment echoed by shareholders in the Exchange. Shortly after Macquarie withdrew its offer, the LSE received an unsolicited approach from NASDAQ valuing the company at £2.4 billion. This too it rejected. NASDAQ later pulled its bid, and less than two weeks later on 11 April 2006, struck a deal with LSE's largest shareholder, Ameriprise Financial's Threadneedle Asset Management unit, to acquire all of that firm's stake, consisting of 35.4 million shares, at £11.75 per share.[43] NASDAQ also purchased 2.69 million additional shares, resulting in a total stake of 15%. While the seller of those shares was undisclosed, it occurred simultaneously with a sale by Scottish Widows of 2.69 million shares.[44] The move was seen as an effort to force LSE to the negotiating table, as well as to limit the Exchange's strategic flexibility.[45]

Subsequent purchases increased NASDAQ's stake to 25.1%, holding off competing bids for several months.[46][47][48] United Kingdom financial rules required that NASDAQ wait for a period of time before renewing its effort. On 20 November 2006, within a month or two of the expiration of this period, NASDAQ increased its stake to 28.75% and launched a hostile offer at the minimum permitted bid of £12.43 per share, which was the highest NASDAQ had paid on the open market for its existing shares.[49] The LSE immediately rejected this bid, stating that it "substantially undervalues" the company.[50]

NASDAQ revised its offer (characterized as an "unsolicited" bid, rather than a "hostile takeover attempt") on 12 December 2006, indicating that it would be able to complete the deal with 50% (plus one share) of LSE's stock, rather than the 90% it had been seeking. The U.S. exchange did not, however, raise its bid. Many hedge funds had accumulated large positions within the LSE, and many managers of those funds, as well as Furse, indicated that the bid was still not satisfactory. NASDAQ's bid was made more difficult because it had described its offer as "final", which, under British bidding rules, restricted their ability to raise its offer except under certain circumstances.

In the end, NASDAQ's offer was roundly rejected by LSE shareholders. Having received acceptances of only 0.41% of rest of the register by the deadline on 10 February 2007, Nasdaq's offer duly lapsed.[51]

On 20 August 2007, NASDAQ announced that it was abandoning its plan to take over the LSE and subsequently look for options to divest its 31% (61.3 million shares) shareholding in the company in light of its failed takeover attempt.[52] In September 2007, NASDAQ agreed to sell the majority of its shares to Borse Dubai, leaving the United Arab Emirates-based exchange with 28% of the LSE.[53]

Proposed merger with TMX Group

On 9 February 2011, London Stock Exchange Group announced it had agreed to merge with the Toronto-based TMX Group, the owners of the Toronto Stock Exchange, creating a combined entity with a market capitalization of listed companies equal to £3.7 trillion.[54] Xavier Rolet, CEO of the LSE Group at the time, would have headed the new enlarged company, while TMX Chief Executive Thomas Kloet would have become the new firm president. London Stock Exchange Group however announced it was terminating the merger with TMX on 29 June 2011 citing that "LSEG and TMX Group believe that the merger is highly unlikely to achieve the required two-thirds majority approval at the TMX Group shareholder meeting".[55] Even though LSEG obtained the necessary support from its shareholders, it failed to obtain the required support from TMX's shareholders.

Opening times

Normal trading sessions on the main orderbook (SETS) are from 08:00 to 16:30 local time every day of the week except Saturdays, Sundays and holidays declared by the exchange in advance. The detailed schedule is as follows:

  1. Trade reporting 07:15–07:50
  2. Opening auction 07:50–08:00
  3. Continuous trading 08:00–16:30
  4. Closing auction 16:30–16:35
  5. Order maintenance 16:35–17:00
  6. Trade reporting only 17:00–17:15

[56] Auction Periods (SETQx)

SETSqx (Stock Exchange Electronic Trading Service – quotes and crosses) is a trading service for securities less liquid than those traded on SETS.

The auction uncrossings are scheduled to take place at 8:00, 9:00, 11:00, 14:00, and 16:35.

Observed holidays are New Year's Day, Good Friday, Easter Monday, May Bank Holiday, Spring Bank Holiday, Summer Bank Holiday, Christmas Day, and Boxing Day. If New Year's Day, Christmas Day, and/or Boxing Day falls on a weekend, the following working day is observed as a holiday.

Arms

Coat of arms of ThyssenKrupp
Adopted
10 September 1923
Crest
On a wreath of the colours, In front of a tower proper a lion passant guardant Or.
Escutcheon
Argent, a cross and in the first quarter a sword erect gules; on a chief of the second a balance Or.
Supporters
On either side a griffin sable, gorged with a mural crown Or.
Motto
DICTUM MEUM PACTUM[57]

See also

  • List of stock exchanges
  • List of stock exchanges in the Commonwealth of Nations
  • List of stock exchanges in the United Kingdom, the British Crown Dependencies and United Kingdom Overseas Territories
  • Stock Exchange forgery 1872–73
  • TAURUS (share settlement)

References

  1. ↑ "Market Statistics - Focus (April 2023) The World Federation of Exchanges". World Federation of Exchanges. https://focus.world-exchanges.org/issue/april-2023/market-statistics. 
  2. ↑ "London Stock Exchange (LSE)". https://www.tradinghours.com/markets/lse. 
  3. ↑ "London Stock Exchange (LSE)". https://www.tradinghours.com/markets/lse. 
  4. ↑ "History of London Stock Exchange Group". http://www.lseg.com/about-london-stock-exchange-group/history. 
  5. ↑ Foy, Simon (2023-10-19). "London Stock Exchange overtakes Paris to regain crown as Europe’s biggest market" (in en-GB). The Telegraph. ISSN 0307-1235. https://www.telegraph.co.uk/business/2023/10/19/london-stock-exchange-overtakes-paris-europe-market/. 
  6. ↑ David Summers (3 March 2022). "Ownership of UK quoted shares: 2020". Office for National Statistics. https://www.ons.gov.uk/economy/investmentspensionsandtrusts/bulletins/ownershipofukquotedshares/2020. 
  7. ↑ Nisha Arora (11 February 2021). "Financial Lives 2020 survey: the impact of coronavirus". Financial Conduct Authority. https://www.fca.org.uk/publication/research/financial-lives-survey-2020.pdf. 
  8. ↑ "Royal Exchange, London". http://www.walklondon.com/london-attractions/royal-exchange.htm. 
  9. ↑ "Heritage | The Royal Exchange" (in en-US). http://www.theroyalexchange.co.uk/heritage/. 
  10. ↑ "St Paul's Institute: A Valuable Exchange at the Royal Exchange". http://www.stpaulsinstitute.org.uk/dialogue/tanya-barman/opinion/2012/jun/21/a-valuable-exchange-at-the-royal-exchange. 
  11. ↑ "Gresham Grasshopper, Royal Exchange, London – Insect Sculptures on Waymarking.com" (in en). http://www.waymarking.com/waymarks/WM6R6Y_Gresham_Grasshopper_Royal_Exchange_London. 
  12. ↑ Ranald Michie (1999). The London Stock Exchange: A History. Oxford University Press. ISBN 9780191529344. https://books.google.com/books?id=ZCaQDwAAQBAJ&q=London%20Stock%20Exchange%20First%20Rule%20Book&pg=PA37. Retrieved 7 June 2019. 
  13. ↑ "Calls for Scotland to have its own stock exchange". 4 August 2010. http://www.heraldscotland.com/news/home-news/calls-for-scotland-to-have-its-own-stock-exchange-1.1045699. 
  14. ↑ "On This Day: 20 July 1990: IRA bombs Stock Exchange". BBC News. 20 July 1990. http://news.bbc.co.uk/onthisday/hi/dates/stories/july/20/newsid_2515000/2515667.stm. 
  15. ↑ FINEMAN, MARK (21 July 1990). "Bomb Blast Rips London's Stock Exchange; No Injuries Reported : Terrorism: Apparent IRA warning allows time to evacuate the building and surrounding area". Los Angeles Times. https://articles.latimes.com/1990-07-21/news/mn-170_1_london-stock-exchange. 
  16. ↑ "London Stock Exchange Is Rocked by a Bombing". The New York Times. 21 July 1990. https://www.nytimes.com/1990/07/21/world/london-stock-exchange-is-rocked-by-a-bombing.html. 
  17. ↑ Davies, Caroline (16 October 2011). "Occupy London protest continues into second day". The Guardian (London). https://www.theguardian.com/uk/2011/oct/16/occupy-london-protest-second-day. 
  18. ↑ "Stock exchange occupation blocked". Media Wales (Wales). 15 October 2011. http://www.walesonline.co.uk/news/uk-news/2011/10/15/stock-exchange-occupation-blocked-91466-29601928/. 
  19. ↑ "Occupy London: Protest continues for second day". BBC News (London). 16 October 2011. https://www.bbc.co.uk/news/uk-15324901. 
  20. ↑ Hope, Kate (25 April 2019). "Extinction Rebellion protesters glue themselves to London Stock Exchange". https://www.euronews.com/2019/04/25/extinction-rebellion-protesters-glue-themselves-to-london-stock-exchange. 
  21. ↑ 21.0 21.1 "Extinction Rebellion activists end London protests". 25 April 2019. https://www.bbc.co.uk/news/uk-england-london-48058177. 
  22. ↑ "Extinction Rebellion: London Stock Exchange blocked by climate activists". 25 April 2019. https://www.bbc.co.uk/news/uk-england-london-48049040. 
  23. ↑ "London Stock Exchange". https://www.londonstockexchange.com/raise-finance/equity/main-market?tab=insights-and-reports&lang=en. 
  24. ↑ Lessambo, Felix I. (2021). International Finance: New Players and Global Markets. Springer. ISBN 9783030692322. https://books.google.com/books?id=6eAhEAAAQBAJ&q=The%20main%20market%20is%20home%20to%20over%201%2C300%20large%20companies%20from%2060%20different%20countries.%20London%20Stock%20Exchange&pg=PA86. Retrieved 18 April 2021. 
  25. ↑ "AIM". Thomson Reuters. https://uk.practicallaw.thomsonreuters.com/8-107-6392?transitionType=Default&contextData=(sc.Default)&firstPage=true. 
  26. ↑ "SECURITY TYPES". London Stock Exchange. https://www.londonstockexchange.com/traders-and-brokers/security-types/security-types.htm. 
  27. ↑ CC&G - London Stock Exchange Group. Retrieved 26 August 2015.
  28. ↑ Monte Titoli London Stock Exchange Group. Retrieved 26 August 2015.
  29. ↑ Leo King (14 February 2011). "London Stock Exchange finished the switch to Linux". Computerworld UK. http://www.computerworlduk.com/news/open-source/3260727/london-stock-exchange-in-historic-linux-go-live/. 
  30. ↑ Ajay Shah (4 July 2009). "Microsoft inside the exchange". Blogspot. http://ajayshahblog.blogspot.com/2009/07/microsoft-inside-exchange.html. 
  31. ↑ "London Stock Exchange to replace Tradelect with Millennium". London: ComputerWeekly.com. 4 September 2009. http://www.computerweekly.com/news/1280090627/London-Stock-Exchange-to-replace-Tradelect-with-Millennium. 
  32. ↑ Rowena Mason (10 September 2008). "Seven-hour LSE blackout caused by double glitch". The Daily Telegraph (London). https://www.telegraph.co.uk/finance/markets/4676369/Seven-hour-LSE-blackout-caused-by-double-glitch.html. 
  33. ↑ "London Stock Exchange trading hit by technical glitch". BBC News. 26 November 2009. http://news.bbc.co.uk/1/hi/business/8380607.stm. 
  34. ↑ David M. Williams (8 October 2009). "London Stock Exchange gets the facts and dumps Windows for Linux". ITWire. http://www.itwire.com/opinion-and-analysis/the-linux-distillery/28359-london-stock-exchange-gets-the-facts-and-dumps-windows-for-linux. 
  35. ↑ "London Stock Exchange Rejects .NET For Open Source". Slashdot. 6 October 2009. http://linux.slashdot.org/story/09/10/06/1742203/London-Stock-Exchange-Rejects-NET-For-Open-Source. 
  36. ↑ Stafford, Philip (14 February 2011). "LSE moves to faster UK trading system". Financial Times. ISSN 0307-1766. http://www.ft.com/intl/cms/s/0/8a87cf48-383e-11e0-8257-00144feabdc0.html. 
  37. ↑ "Investor Relations". http://www.lseg.com/investor-relations. 
  38. ↑ "2000: Leading stock exchanges plan merger". 3 May 2000. http://news.bbc.co.uk/onthisday/hi/dates/stories/may/3/newsid_2481000/2481359.stm. 
  39. ↑ "LSE confirms Turquoise acquisition talks". https://www.thetradenews.com/lse-confirms-turquoise-acquisition-talks/. 
  40. ↑ "LSE agrees to sell Borsa Italiana to Euronext for €4.3 billion". 9 October 2020. https://www.reuters.com/article/uk-lse-borsa-italiana-m-a-idUKKBN26U0H7. 
  41. ↑ "Euronext today completes the acquisition of the Borsa Italiana Group and publishes Q1 2021 results". https://www.euronext.com/en/about/media/euronext-press-releases/acquisition-borsa-italiana-group-and-q1-2021-results. 
  42. ↑ "Microsoft buys near 4% stake in London Stock Exchange Group as part of 10-year cloud deal". https://www.cnbc.com/2022/12/12/microsoft-buys-near-4percent-stake-in-london-stock-exchange-and-launches-10-year-partnership.html. 
  43. ↑ Patrick, M.; Lucchetti, A.; Reilly, D.; Taylor, E. (11 April 2006). "Nasdaq Acquires 15% of LSE". The Wall Street Journal. https://www.wsj.com/articles/SB114477409808123029. 
  44. ↑ "Scottish Widows says has sold 2.7 mln LSE shares at 1,175 pence". Forbes. 12 April 2006. https://www.forbes.com/finance/feeds/afx/2006/04/12/afx2665242.html. 
  45. ↑ Ortega, E. (11 April 2006). "Nasdaq Buys 15 Percent Stake in LSE for $782 Million". Bloomberg News. https://www.bloomberg.com/apps/news?pid=10000103&sid=aY106PolhKUQ&refer=us. 
  46. ↑ MacDonald, A.; Lucchetti, A. (4 May 2006). "In LSE Stakes, Nasdaq Advances, Euronext Falls". The Wall Street Journal. https://www.wsj.com/articles/SB114670228362743269. 
  47. ↑ Lucchetti, A.; MacDonald, A. (11 May 2006). "Nasdaq Lifts Its LSE Stake to 24%". The Wall Street Journal. https://www.wsj.com/articles/SB114729205685149301. 
  48. ↑ Goldsmith, B.; Elliott, M. (19 May 2006). "Nasdaq raises LSE stake, making rival bids harder". Reuters. http://today.reuters.com/business/newsArticle.aspx?type=bankingFinancial&storyID=nL1923903. [yes|permanent dead link|dead link}}]
  49. ↑ Lucchetti, A.; MacDonald, A. (20 November 2006). "Nasdaq Makes Bid to Buy Rest of London Stock Exchange". The Wall Street Journal. https://www.wsj.com/articles/SB116400769286328180. 
  50. ↑ "LSE rejects £2.7bn Nasdaq offer". BBC News. 20 November 2006. http://news.bbc.co.uk/1/hi/business/6164376.stm. 
  51. ↑ "Nasdaq fails in takeover bid for London Stock Exchange". International Herald Tribune. 11 February 2007. https://www.nytimes.com/2007/02/11/business/worldbusiness/11iht-nasdaq.4549290.html. 
  52. ↑ "Sale Update". reuters.co.uk. 20 August 2007. http://investing.reuters.co.uk/news/articleinvesting.aspx?type=mergersNews&storyID=2007-08-20T091233Z_01_L2025258_RTRIDST_0_LSE-NASDAQ-SALE-UPDATE-1.XML. 
  53. ↑ Magnusson, N.; McSheehy, W. (20 September 2007). "Dubai to Buy Stakes in Nasdaq, LSE; Strikes OMX Deal". bloomberg.com. https://www.bloomberg.com/apps/news?pid=20601087&sid=aqzGAS7oAezg&refer=home. 
  54. ↑ "LSE agrees merger with TMX of Canada". BBC News. 9 February 2011. https://www.bbc.co.uk/news/business-12400785. 
  55. ↑ "Announcement re LSEG/TMX Group merger – London Stock Exchange". Londonstockexchangegroup.com. http://www.londonstockexchangegroup.com/newsroom/2011pressreleases/lseannouncementrelsegtmxgroupmerger.htm. 
  56. ↑ "SETSqx and SEAQ". https://www.lseg.com/areas-expertise/our-markets/london-stock-exchange/equities-markets/trading-services/domestic-trading-services/setsqx. 
  57. ↑ "'London Stock Exchange'". https://www.heraldry-wiki.com/heraldrywiki/index.php?title=London_Stock_Exchange. 

Further reading

  • Michie, R. C. (1999). The London Stock Exchange: A History. Oxford: Oxford University Press. ISBN 0-19-829508-1. 

[ ⚑ ] 51°30′54.25″N 0°5′56.77″W / 51.5150694°N 0.0991028°W / 51.5150694; -0.0991028


IndustryConglomerate
PredecessorThyssen AG
Krupp
Founded17 March 1999; 26 years ago (1999-03-17)
Headquarters
Duisburg and Essen
,
Germany [1]
Area served
Worldwide
Key people
Guido Kerkhoff
(CEO and Chairman of the executive board)
Ulrich Lehner
(Chairman of the supervisory board)[2]
ProductsSteel, stainless products, automotive technologies, plant technologies, elevator systems, marine systems, shipbuilding, firearms
RevenueIncrease €41.447 billion (2017)[3]
Increase €1.722 billion (2017)[3]
Decrease €271 million (2017)[3]
Total assetsDecrease €35.048 billion (2017)[3]
Total equityIncrease €3.404 billion (2017)[3]
OwnerAlfried Krupp von Bohlen und Halbach Foundation (20.9%)
Cevian Capital (13.7%)
Others (65.4%)[4]
Number of employees
Increase 158,739 (2017)[3]
Websitewww.thyssenkrupp.com

Thyssenkrupp AG /ˈtɪsɛn.krʊp/ is a German multinational conglomerate with focus on industrial engineering and steel production. The company is based in Duisburg and Essen and divided into 670 subsidiaries worldwide. It is one of the world's largest steel producers; it was ranked tenth-largest worldwide by revenue in 2015.[5] The company is the result of the 1999 merger of Thyssen AG and Krupp, and now has its operational headquarters in Essen. The largest shareholders are Alfried Krupp von Bohlen und Halbach Foundation and Cevian Capital.[6]

In addition to steel production, Thyssenkrupp's products range from machines and industrial services to high-speed trains, elevators and shipbuilding. Subsidiary Thyssenkrupp Marine Systems also manufactures frigates, corvettes and submarines for the German and foreign navies.

History

Thyssenkrupp is the result of a merger of two German steel companies, Thyssen AG founded in 1891 under the name Gewerkschaft Deutscher Kaiser and Krupp founded in 1811. As early as the 1980s, the companies began negotiations on a merger and began closely cooperating in some business areas. In 1997, the companies combined their flat steel activities, with a full merger completed in March 1999.[7]

Beginnings (1811–1891)

Krupp

  • 1811: Friedrich Carl Krupp establishes a cast steel factory in Essen, Germany.
  • 1826: After Friedrich Krupp's death in 1826, his widow Therese Krupp runs the company together with other relatives and her eldest son Alfred, who was 14 years old at the time.
  • 1833: Krupp manufactures complete rolling machines.
  • 1847: Expansion of the railroads increases demand for durable cast steel, triggering the company’s first surge of growth. Supplies include axles, springs and the seamless tires that can withstand increasing speed without cracking.
  • 1859: The Prussian military orders 300 gun barrels, marking development of the company's second major production segment; shortly after Krupp begins producing complete artillery.
  • 1862: Construction of the first Bessemer steel plant on the continent for mass production of rails and steel sheet.
  • 1864–1872: The company purchases various iron ore mines to avoid dependency on external suppliers. In 1873, Krupp establishes his own shipping company in Rotterdam to transport ore from the Spanish company Orconera Iron Ore Co., in which he owns shares.
  • 1872: Alfred Krupp issues a "General Directive" establishing company hierarchy from foreman to management. Included in the directive are regulations concerning company welfare programs, including the pension fund, sickness and death benefit insurance, company bakery and retail store, worker housing estates and health care, all of which were slowly introduced beginning in 1836.

Thyssen

Bond of the Thyssen & Co. AG, issued February 1922
  • 1867: Establishment of Thyssen, Fossoul & Co. a company making hoop iron for barrels, crates, baling etc.
  • 1871: Establishment of Thyssen & Co. in Mülheim an der Ruhr, Germany
  • 1891: August Thyssen becomes owner of the Gewerkschaft Deutscher Kaiser coal mine in Hamborn near Duisburg. One year earlier, the Thyssen company constructed a steel mill directly adjacent to one of the pits, thus Thyssen grows into an iron and steel mill with its own coal base.

Wilhelminian period (1892–1917)

Krupp

  • 1893: Following the death of Alfred Krupp in 1887, Friedrich Alfred Krupp expands his father's enterprise with takeovers of additional steel mills and shipyards and construction of diesel engines in collaboration with Rudolf Diesel.
  • 1899: With the acquisition of and/or increased investment in various coal mines (Hannibal colliery near Bochum and the Emscher-Lippe coal mine near Datteln) business development concentrates on vertical structures with expansion of a coal base.
  • 1903: Friedrich Alfred Krupp dies suddenly in 1902 at the age of 48 and his eldest daughter Bertha Krupp inherits the company. The company is converted into a stock corporation by will of the late owner; Bertha retains all the stock. As she is still a minor, her mother Margarethe Krupp as guardian and proprietor takes over as the head of the company, managed by a board of directors.
  • 1906: Bertha Krupp marries Gustav von Bohlen und Halbach who adds the Krupp name as a prefix to his own family name. He is appointed vice chairman of the board and serves as chairman through 1943.
  • 1912: Development of stainless, acid-resistant steels quickly finds application in the chemical and food processing industries, medicine and building. The spire of New York's Chrysler Building is clad in the new stainless steel panels.
  • 1917: The "Paris Gun" is developed with a range of 130 km.

Thyssen

  • 1895: Thyssen sets up integrated iron and steel mill with the construction of a blast furnace plant at the Gewerkschaft Deutscher Kaiser. Subsequent expansion is focused on vertical integration of the group.
  • 1906: Intra-company trading and shipping organizations are established to facilitate transport of iron ore to the blast furnace plants. In 1910, the N.V. Handels- en Transport Maatschappij Vulcaan ocean shipping company is establishment in Rotterdam to keep the Thyssen group independent of the international freight market.
  • 1910: Expansion with mills in the Lorraine and Normandy.
  • 1912: Various branches are set up in the Mediterranean area (Algiers, Port Said, Suez, Oran, Naples, Bona, Bizerte, Tangier and Genoa) so that freighters can store coal en route to Russian or Indian ore mines besides delivery of coal or freight for third parties.
  • 1913: Attention is paid to Latin America with the founding of the Deutsch-Überseeische Handelsgesellschaft (German Overseas Trading Company). Thyssen constructs extensive housing estates and related infrastructure to attract workers to the western Ruhr area. By the end of 1913 Thyssen owns 8,750 housing units for 15,500 employees and 850 civil servants: housing for 44,000 people.
  • 1914: Gewerkschaft Deutscher Kaiser begins producing armaments for the First World War. To compensate for labor shortages, women, civilians from Belgium and prisoners of war work for the company.

Weimar Republic (1918–1933)

Krupp

  • 1919: Following the Treaty of Versailles, Krupp reverts to peace-time production focusing on manufacture of locomotives, trucks, agricultural machinery and excavators. The post-war circumstances of inflation, occupation, and dismantling the company's industrial infrastructure led to a financial crisis in 1924/25. The company stabilizes by, among other measures, streamlining processing operations and expanding stainless steel production.
  • 1926: Sintered tungsten carbide was developed by Osram as a material for machining metal. In 1925, Krupp buys the licence and launches sintered carbide onto the market, exploiting its exceptional hardness and wear resistance, which represent a breakthrough in tool engineering.
  • 1929: A 15,000-ton forging press goes into operation in Essen-Borbeck. It is at the time the largest worldwide.

Thyssen

  • 1919: The company is renamed from Gewerkschaft Deutscher Kaiser to August Thyssen-Hütte; Gewerkschaft and mining operations are transferred to an independent company, Gewerkschaft Friedrich Thyssen. The company's foreign interests in the Allied and Soviet countries are expropriated.
  • 1926: Major parts of the Thyssen group are transferred to a newly merged group, Vereinigte Stahlwerke AG, bringing together several coal and steel companies in the Ruhr area to solve cost and production problems of excess capacities. August Thyssen dies at Schloss Landsberg near Essen. His sons Fritz Thyssen and Heinrich Thyssen-Bornemisza inherit the industrial enterprises. His other two children, Hedwig and August Jr., are compensated differently.

Third Reich (1933–1945)

Krupp

  • 1937: As dictated by the state’s Four-Year Plan, production of locomotives, trucks and ships is expanded and armaments production is resumed.
  • 1941: Krupp Germania shipyard is extended with acquisition of Deutsche Schiff- und Maschinenbau AG "Deschimag" to include larger ships and submarines. Krupp takes advantage of foreign labourers, slave labourers and prisoners of war to compensate for labour shortages.

Thyssen

  • 1934: The company August Thyssen-Hütte AG is spun off the Vereinigte Stahlwerke AG as a so-called operating company.
  • 1939: Fritz Thyssen, Chairman of the Board of Vereingte Stahlwerke AG, flees to Switzerland after the invasion of Poland. Vichy France hands over Thyssen and his wife to the German Reich at the end of 1940.
  • 1940: A rearmament policy is introduced in the mid-1930s and with the outbreak of war labor is conscripted and supplemented by foreign workers, forced laborers and prisoners of war.
  • 1945: Thyssenhütte mill in Hamborn occupied by US troops.

Mergers and acquisitions

Corporate headquarters in Essen.
Former Thyssenkrupp building in downtown Düsseldorf

During a period of expansion in 1978, Thyssen AG entered the North American automotive industry with the acquisition of Budd's automotive operations,[8] which became the automotive division of Thyssen and operated in North America as Budd Thyssen, later Thyssenkrupp Budd Co. In October 2006 Thyssenkrupp sold Thyssenkrupp Budd's North American body and chassis operations to Martinrea International Inc.[9]

In 1988, Thyssenkrupp acquired German shock absorber manufacturer Bilstein, where it became a division until 2005, where it became a wholly owned subsidiary.[10]

In 1999, Thyssen (one of the companies of the merger to form Thyssenkrupp Elevator) acquired the elevator division of American-based conglomerate Dover Corporation. Four years later Thyssenkrupp acquired the Korean-based Dongyang Elevator.

In 2005 Thyssenkrupp acquired Howaldtswerke-Deutsche Werft (HDW) in Kiel from One Equity Partners. One Equity Partners holds 25% of the TKMS shares.

In December 2005 Thyssenkrupp acquired 60% of Atlas Elektronik from BAE Systems, with EADS acquiring the remaining 40%.

In August 2007 Thyssenkrupp Materials North America acquired OnlineMetals.com, a small-quantity distributor of semi-finished metals and plastics based in Seattle, Washington.[11]

In early 2008 Thyssenkrupp Aerospace acquired Apollo Metals and Aviation Metals, both suppliers to aerospace and defence based in Kent, Washington.

In June 2012 Thyssenkrupp sold Thyssenkrupp Waupaca to KPS Capital Partners. Thyssenkrupp Waupaca is tier two supplier to the automotive industry, located in Waupaca, Wisconsin.

In April 2014, Thyssenkrupp announced it was in talks to sell its Swedish maritime defence unit to Saab after failing to agree deals with the Swedish government for a new generation of submarines.[12]

Thyssenkrupp Access, the global manufacturer of home elevators, wheelchair lifts and stair lifts, has tied up with Chennai-based Elite Elevators[13] to launch high-end elevators in India.[14] In June 2018, Thyssenkrupp signed a final agreement with India's Tata Steel to establish a long-expected steel venture. The 50-50 joint venture will be called Thyssenkrupp Tata Steel and will be the second largest steel producer in Europe, after ArcelorMittal.[15]

Divestments and Restructures of Steel Business

Steel Europe

In September 2017, Thyssenkrupp and India-based Tata Steel announced plans to combine their European steel-making businesses. The final agreement was signed in June 2018. The deal will structure the European assets as Thyssenkrupp Tata Steel, a 50-50 joint venture headquartered in Amsterdam. The joint venture will be the second largest steel producer in Europe.[15][16]

Steel Americas

In 2013, Thyssenkrupp sold its US steel business to ArcelorMittal and Nippon Steel for $1.55 billion. In February 2017, it agreed to sell its Brazilian steel business CSA to Ternium for €1.5 billion. These two transactions meant that Thyssenkrupp fully parted from the Steel Americas business.[17]

On 11 May 2007, Thyssenkrupp AG announced an investment of €3.1 billion for a project consisting of building new carbon steel and stainless steel processing facilities in southern Alabama that would employ 2,700 people when fully operational. The project, along with a multibillion-dollar greenfield steelmaking facility in Brazil, is a cornerstone of Thyssenkrupp's new global expansion strategy into the North American and NAFTA high-value carbon steel markets. The company announced that the investment was increased to $4.6 billion in 2010. As of the date of the announcement, the investment was the largest private economic development investment in Alabama's history and the largest by a German company in the U.S.[18] The site selection announcement came after several months of competition involving several southeastern sites which was eventually narrowed between a site on the Mississippi River in Convent, Louisiana, and a site on the Tombigbee River, in Calvert, Alabama in north Mobile County, about 40 miles north of Mobile. The site in Alabama was eventually chosen. Groundbreaking on the Calvert facilities was held in November 2007. The carbon steel and stainless steel companies are independent and operate under different management teams. Co-locating both facilities on the same site enabled the company to optimize the investment in infrastructure and in some shared processing.

The carbon steel company, Thyssenkrupp Steel USA, which represented seventy percent of the overall project investment and hiring, consists of a state-of-the-art hot strip mill, cold rolling mill, and four hot dip galvanizing lines. The hot strip mill began operations in July 2010, the cold roll mill in September 2010, and the first of the hot dip galvanizing lines in March 2011. The company projects to be fully operational in late 2011 and employ approximately 1,800 people at that time. Thyssenkrupp Stainless USA projects to employ approximately 900 people when fully operational in late 2012. At full production, Thyssenkrupp Steel USA will have the capacity to produce 4 million metric tons of carbon steel for NAFTA customers in the automotive, construction, appliance, pipe and tube, and service center industries. In July 2011, the carbon steel project was awarded "Best Greenfield Technology" by American Metal Market, considered to be the longest continuously published newspaper in the metals industry.[19] Thyssenkrupp Stainless USA built a cold roll mill and is in the process of building a meltshop.

Additionally, the Alabama State Port Authority invested over $100 million to build a state-of-the-art transloading slab terminal on the southern tip of Pinto Island in Mobile Bay to service the inbound raw material slabs for the upriver carbon steel facility. Raw material slabs shipped to the Alabama facility from Thyssenkrupp CSA are transloaded from Panamax ships at the terminal onto shallow draft barges for transport upriver to the facility. The terminal is equipped with three wide-span gantry cranes with state-of-the-art magnetic lifting gear designed by Thyssenkrupp, and it utilizes RFID technology to read identifiers on each slab and provide up-to-date inventory records that include each slab's location and weight. The same magnetic technology is also used at Thyssenkrupp's Calvert facility. The terminal was necessary to Alabama's award of the project since the Tombigbee River depth and lack of turning basins prohibit deep draft ship navigation to the site in Calvert.[20]

The world steel industry peaked in 2007, just as the company spent $12 billion to build the two most modern mills in the world, in Alabama and Brazil. The worldwide Great Recession started in 2008. Heavy cutbacks in construction combined with sharply lowered demand, and prices fell 40%. Thyssenkrupp lost $11 billion on its two new plants, which sold steel below the cost of production. Thyssenkrupp's stainless steel division, Inoxum, including the stainless portion of the US plant, was sold to Finnish stainless steel company Outokumpu in 2012.[21] Finally in 2013, Thyssenkrupp offered the remaining portion of the plant for sale at under $4 billion.[22]

In April 2015, Thyssenkrupp announced it would be investing more than €800 million in the North American region by 2020 to take advantage of the economy’s reindustrialization.[23]

Thyssenkrupp Tailored Blanks

In September 2012 Thyssenkrupp agreed to sell the automotive components manufacturer Tailored Blanks to the China-based Wuhan Iron and Steel Corporation for an undisclosed price.[24] At the time of the agreement Tailored Blanks had annual sales of around 700 million euros and a global market share of about 40 percent in automotive laser-welded blanks.[24]

Products and sales

Thyssenkrupp generates 33% of its consolidated sales in its home market. The rest of the EU (European Union) (28%) and the NAFTA region (21%) are the key trading partners for business and exports outside Germany. Thyssenkrupp companies hold leading positions with their products in numerous international markets.

Business areas

The operations are organized in six business areas:[25]

  • Components Technology
  • Elevator Technology
  • Industrial Solutions
  • Materials Services
  • Steel Europe

Construction of the corporate headquarters began in 2007. The first buildings were complete in 2010; the second phase of building was completed in June 2015. Situated in the west of Essen, the corporate campus was designed by Chaix & Morel et associeés (Paris) and JSWD Architekten (Cologne). Their design was selected for construction in an architectural design competition[26] in 2006.

Controversies

Price fixing

In November 2006, five elevator manufacturers, including Thyssenkrupp, were found guilty of price fixing by the EU, over nine years,[27] along with competitors Otis Elevator Co., Schindler Group, Kone and Mitsubishi Elevator Europe. A few months later on 21 February 2007, Thyssenkrupp was fined €479 million by the EU (Otis was fined $US295 million).[27] The EU Competition Commission reported that the companies had worked to rig bids for procurement contracts, share markets, and fix prices between at least 1995 and 2004.[27] The Commission reported that the companies "did not contest the facts" found by EU regulators, noting none of the accused requested a hearing to answer the allegations. The fines totaled US$1.3 billion.[27]

In July 2012 the German Bundeskartellamt served fines totalling €124.5million on Thyssenkrupp GfT Gleistechnik GmbH, Essen (€103m), Stahlberg Roensch GmbH, Seevetal, which since 2010 belongs to the Vossloh group (€13m), TSTG Schienen Technik GmbH & Co. KG, Duisburg, a subsidiary of the Voestalpine group (€4.5m) and Voestalpine BWG GmbH & Co. KG, Butzbach, another Voestalpine subsidiary (€4m) for price fixing of steel railway lines and points blades supplied to Deutsche Bahn, the German state railway. According to Andreas Mundt, president of the Bundeskartellamt, "For many years the rail suppliers have guaranteed each other virtually constant shares of Deutsche Bahn's contract volume. The cartel members monitored compliance with the contract volume quotas, assigned each other projects and set protective prices in order to steer the contract award process.” The proceedings had been triggered by an application for leniency filed by the Austrian company Voestalpine AG. Investigations into further companies are ongoing.

Turin plant fire and trial

On the early morning of 6 December 2007, an accident on the annealing and pickling line of the Thyssenkrupp plant in Turin, Italy, caused the death of seven steelworkers.[28]

The accident happened between 00:45 and 00:48, when the eight workers that were then on duty attempted to extinguish a localized small pool fire with CO2 fire extinguishers and a fire hydrant, without success. Roughly 400L of hydraulic oil escaped during the rupture of a hydraulic circuit that caused a violent jet fire and engulfed the workers that were fighting the fire.[28]

Technical consultants of the public prosecutor, concluded: "The dynamics of the accident was established after the exam of many source of evidences and cross correlations between witnesses formal declarations, data from the control system, design data, damages surveys. To this aim, a multidisciplinary approach involving engineers, informatics, public officers, firemen, work inspectors was followed. The enquiry showed how the jet fire that hit the eight workers killing seven of them originated by the rupture of an hydraulic circuit initially involved in a localized small pool fire. This case demonstrated how the fire risk associated with hydraulic circuits has been seriously underestimated."[28]

CEO Espenhahn has been charged by the State prosecutor of Turin with "voluntary multiple murder with eventual malice" ("omicidio volontario multiplo con dolo eventuale"), while five other managers and executives have been charged with "culpable murder with conscious guilt".[29] On Friday 15 April 2011, Espenhahn and all the other indictees were pronounced guilty of all charges; Espenhahn has been sentenced to 16 years and 6 months in jail and to a lifelong ban from holding public offices. Prior to the court case, Espenhahn was transferred from Italy and is now believed to reside in Brazil. On 23 February 2013, the Appellate Court changed the sentence for Espenhahn to culpable murder, not recognizing the voluntary murder, thus reducing the conviction. Convictions for the other managers were reduced as well.[citation needed]

In May 2016 the appeal court has reduced the sentences for Espenhahn down to 9 years and 8 months, the other 5 managers (4 Italians and 1 German) between 6 and 7 years. Priegnitz the German manager, was sentenced to 6 years and 3 months.[30] According to the bilateral laws between Germany and Italy, the convicted can serve the term in his home country and with accordance to this countries' laws. Since accounts of first-degree murder have been appealed down to aggravated negligent manslaughter, the German convicts are expecting further reductions that would eventually not exceed 5 years.[30]

Incidents

Thyssenkrupp has been the victim of major, organised hacking attacks on several occasions, targeting the company's trade secrets.

On 8 December 2016 it emerged that the company was attacked in February of that year. Internally uncovered in April 2016, it took their IT team around half a year to fix. The hack is thought to have originated from South-East Asia and was successful in retrieving information from various departments, including the plant engineering division.[31]

This is not the first time the company fell victim to hacks. In 2012, Thyssenkrupp and other European companies have been attacked by Chinese sources.[32]

Mobile, AL, Elevator Free-fall

On 17 May 2018 Elevator 7 at the Mobile Government Plaza was accidentally put into free-fall during operation, injuring 3 people. It was discovered that the car was above its capacity during the incident.[33]

See also

References

  • James, Harold. Krupp: A History of the Legendary German Firm. Princeton, NJ: Princeton University Press, 2012. ISBN 9780691153407.

Notes

  1. ↑ "Press release - Press releases - Thyssenkrupp AG". Thyssenkrupp.com. 3 December 2014. http://www.Thyssenkrupp.com/en/presse/art_detail.html%26eid%3Dtk_pnid369. 
  2. ↑ "Dr.-Ing. Heinrich Hiesinger". Thyssenkrupp.com. 26 August 2014. http://www.Thyssenkrupp.com/en/konzern/hiesinger.html. 
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 "Thyssenkrupp Annual Report 2016-2017". https://www.Thyssenkrupp.com/media/investoren/berichterstattung_publikationen/update_23_11_2017/en_10/neu2_gb_2016_2017_Thyssenkrupp_gb_eng_web.pdf. 
  4. ↑ "Shareholder structure". 4-traders.com. http://www.4-traders.com/THYSSENKRUPP-436698/company//. 
  5. ↑ "The world's largest steel companies in 2015, based on revenue" Statista
  6. ↑ "THYSSENKRUPP (TKA)". http://www.4-traders.com/THYSSENKRUPP-436698/company/. 
  7. ↑ "Krupp - Lead up to the merger with Thyssen". Thyssenkrupp.com. 30 September 2013. Archived from the original on 28 September 2011. https://web.archive.org/web/20110928085138/http://www.Thyssenkrupp.com/en/konzern/geschichte_konzern_k5.html. 
  8. ↑ "Internationalization and further vertical diversification - Bonn Republic - Thyssenkrupp AG". Thyssenkrupp.com. 30 September 2013. Archived from the original on 26 June 2015. https://web.archive.org/web/20150626140840/http://www.Thyssenkrupp.com/en/konzern/geschichte_chronik_t1978.html. 
  9. ↑ "Thyssenkrupp Budd to sell North American automotive body operations". americanmachinist.com. Archived from the original on 2012-04-01. https://web.archive.org/web/20120401165834/http://www.americanmachinist.com/304/News/Article/False/38615/. 
  10. ↑ History of Bilstein shocks
  11. ↑ "The Story of OnlineMetals.com". onlinemetals.com. http://www.onlinemetals.com/aboutus.cfm. 
  12. ↑ Mia Shanley; Bjorn Rundstrom (15 April 2014). "Thyssenkrupp in talks to sell Swedish naval shipyard to Saab". Reuters. https://www.reuters.com/article/2014/04/14/us-Thyssenkrupp-sweden-shipyard-idUSBREA3D11P20140414. 
  13. ↑ Elite Elevators
  14. ↑ Thyssenkrupp Access unveils high-end home elevator
  15. ↑ 15.0 15.1 https://uk.reuters.com/article/uk-Thyssenkrupp-tata-steel-jointventure/Thyssenkrupp-tata-steel-seal-landmark-joint-venture-deal-idUKKBN1JP1LV
  16. ↑ Turner, Zeke; Patterson, Scott (September 20, 2017). "Thyssenkrupp, Tata Seal Long-Awaited European Steel Deal". The Wall Street Journal (New York City, New York, United States). https://www.wsj.com/articles/Thyssenkrupp-tata-clinch-european-steel-deal-1505891598. 
  17. ↑ "Thyssenkrupp sells Brazilian steel business". Financial Times (Financial Times). February 23, 2017. https://www.ft.com/content/1c94983c-f911-11e6-9516-2d969e0d3b65. 
  18. ↑ "Press release". Thyssenkrupp AG. 3 December 2014. http://www.Thyssenkrupp.com/en/presse/art_detail.html&eid=TKBase_1178868417679_1659377840. 
  19. ↑ Wilson, A. J. The Pick and the Pen. London: Mining Journal Books Limited, 1979. ISBN 9780900117169. OCLC 5818544.
  20. ↑ http://www.asdd.com/pdf/news_05152007.pdf
  21. ↑ "New owners of Thyssenkrupp stainless steel division plan visit in June". Press-Register. May 31, 2012. http://blog.al.com/press-register-business/2012/05/new_owners_of_Thyssenkrupp_sta.html. Retrieved June 15, 2013. 
  22. ↑ John W. Miller and Ike Henning, "Thiessen gets offers for mills: Final bids for steel complexes in Alabama, Brazil will likely fall short of the company's hopes", The Wall Street Journal March 1, 2013
  23. ↑ Georgina Prodhan (24 April 2015). "Thyssenkrupp to invest $866 million in North America". Reuters. https://www.reuters.com/article/2015/04/24/us-Thyssenkrupp-northamerica-idUSKBN0NF1DT20150424. Retrieved 29 April 2015. 
  24. ↑ 24.0 24.1 "Thyssenkrupp to sell Tailored Blanks to WISCO". Reuters. 28 September 2012. http://in.reuters.com/article/2012/09/28/us-Thyssenkrupp-tailoredblanks-idINBRE88R0A920120928. Retrieved 30 September 2012. 
  25. ↑ "Business Areas". Thyssenkrupp.com. 20 November 2014. http://www.Thyssenkrupp.com/de/konzern/business-areas.html. 
  26. ↑ Thyssenkrupp Quartier Architectural Design Competition, retrieved 9 October 2015
  27. ↑ 27.0 27.1 27.2 27.3 "Elevator makers fined $1.3B for price-fixing" (news), Purchasing.com - Reed Business Information, Feb. 2007, webpage: Purchcom-8053.
  28. ↑ 28.0 28.1 28.2 The Thyssen Krupp Accident in Torino: Investigation Methods, Accident Dynamics and Lesson Learned 2012, p 615-620
  29. ↑ "Thyssen, a processo i sei imputati, "Fu omicidio volontario"" (in Italian). Corriere.it. 17 November 2008. http://www.corriere.it/cronache/08_novembre_17/thyssen_rinvio_giudizio_f53b5f78-b4c7-11dd-adce-00144f02aabc.shtml. Retrieved 6 May 2009. 
  30. ↑ 30.0 30.1 "Tödlicher Brand bei Thyssenkrupp: Italiener wollen Deutsche in Haft sehen". n-tv.de. 2017-10-15. https://www.n-tv.de/wirtschaft/Italiener-wollen-Deutsche-in-Haft-sehen-article20083991.html. 
  31. ↑ "Trade secrets stolen from Thyssenkrupp in major hack" (in en-GB). The Stack. 2016-12-08. https://thestack.com/security/2016/12/08/trade-secrets-stolen-from-Thyssenkrupp-in-major-hack/. 
  32. ↑ "EADS, Thyssenkrupp attacked by Chinese hackers: report". Reuters. 2017-02-24. https://www.reuters.com/article/net-us-eads-Thyssenkrupp-hacking-idUSBRE91N07M20130224. 
  33. ↑ http://mynbc15.com/news/local/government-plaza-employees-react-to-elevator-free-fall




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