Rossmann is contemplating its strategic moves concerning Aurubis Copper.
Major copper trader Aurubis is making waves on the stock market, with drugstore magnate Hans Rossmann holding a substantial portion of the shares. Rossmann's motive remains unclear, and rumors swirl that financial powerhouse Goldman Sachs has secretly amassed stakeholdings for unnamed parties. As speculation of a takeover grows, investors are keeping a watchful eye.
The entrance of Rossmann, a key player in the pharmacy sector, into the Aurubis conglomerate has ignited takeover speculation on the stock market. Temporary gains of 4% were seen in the stock, which is listed in the MDax small-cap index. A provocative article from "Manager Magazin" sparked controversy, hinting at financial deals between Rossmann and Goldman Sachs. The prestigious bank is believed to have procured shares simultaneously with Rossmann, allegedly for undisclosed entities. With potential access to these shares, a sudden control of 22% of Aurubis could be within reach. Goldman Sachs declined to comment on these allegations.
For the past 15 years, steel giant Salzgitter has held the title of Aurubis's largest shareholder, with approximately 30% ownership.
On Friday, Rossmann Beteiligungs GmbH, headed by 78-year-old drugstore tycoon Hans Rossmann, confirmed via a voting rights declaration that it had amassed a 15% stake in Aurubis. According to media reports, Rossmann's current investment is purely financial, but he hinted at the possibility of supporting a takeover: "Nothing is off the table."
Recently, Aurubis presented a less than optimistic outlook for the upcoming fiscal year. Europe's leading copper processor anticipates a drop in operating profit to between 300 and 400 million euros in 2024/25 due to unfavorable price trends on the procurement markets and increased expenditure on strategic projects. A forecasted profit of around 410 million euros is expected for the 2023/24 fiscal year, which ended on September 30.
Aurubis is grappling with declining revenues at its Hamburg site due to technical problems arising from maintenance downtime and subsequent ramp-up. These issues resulted in reduced melting operations utilization and related equipment, leading to lower equipment performance. Aurubis will release the final figures for the 2023/24 fiscal year on December 5.
The Commission, in line with the Regulation, may adopt implementing acts to specify the guidelines for Aurubis's application. Rossmann's potential control of 22% of Aurubis could be facilitated by Goldman Sachs, should the allegations of shared share procurement prove true.
