Galva Metal, a Turkish steel producer, reclaims a 35% stake from German counterpart Wuppermann GmbH, ending a decade-long partnership due to divergent growth visions. However, the split won't hinder ongoing business relations between the two entities.
Wuppermann Group, on January 8, 2024, finalized the sale of its 35% share in Galva Metal A.S. based in Kocaeli, Turkey, to the primary owner's family. Since 2013, Wuppermann has been a strategic investor in Galva, a steel service center and distributor in Turkey catering to the Turkish and Middle Eastern markets. Shifting economic conditions and Turkey's steel industry expansion have made collaboration between Wuppermann's EU galvanizing plants and the Turkish distributor more challenging, leading to the share sale agreement.
Galva Metal's President, Tolga Kisacikoglu, confirmed the reacquisition of the 35% stake from Wuppermann GmbH, concluding their decade-long partnership. This move reflects a divergence in their strategic outlooks, with Wuppermann leaning towards caution and Galva Metal pursuing investment and growth plans. Despite this shift, both entities aim to maintain their commercial ties, emphasizing continued business interactions beyond the change in share ownership.
The separation of interests between Galva Metal and Wuppermann is not anticipated to disrupt their ongoing business collaborations. Both companies signal their commitment to sustaining their established connections despite the altered ownership dynamics. Galva Metal's repurchase of the 35% stake underlines its determination to forge an independent path aligned with its strategic growth objectives in the coated flat steel sector.
Galva Metal's decision to regain ownership from Wuppermann marks a strategic shift towards independent growth objectives. While the split concludes a long-term partnership, both entities affirm their dedication to ongoing business relations, ensuring continuity amidst changing ownership dynamics.