Thyssenkrupp surged on the stock market on Friday after announcing the signing of an agreement to sell a 20% stake in its steel business to EP Corporate Group, owned by Czech billionaire Daniel Kretinsky.

At around 10:30 a.m., the German industrial conglomerate's share price was up by almost 10%, by far the biggest gainer on the pan-European STOXX 600 index.

The transaction, the financial terms of which were not disclosed, provides for EP Corporate Group to acquire an additional 30% stake, giving rise to a joint venture owned equally by the two groups.

As part of this strategic partnership, EPCG - which produces energy in nine European countries - will supply thyssenkrupp steel with hydrogen and clean electricity to support its efforts to decarbonize steel production.

EP Corporate Group first developed in energy and infrastructure before diversifying into other sectors, such as retail and media.

Its companies currently generate annual sales of around 100 billion euros.

With a workforce of around 27,000, thyssenkrupp's steel division is currently Germany's leading flat steel manufacturer.

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