Germany: Krones Reenters MDAX After Brief Departure

Deutsche Börse AG yesterday conducted its periodic review of the DAX, MDAX, SDAX and TecDAX indices on the basis of the Fast Exit and Fast Entry rules and, in the evening, announced the decision on the new composition of the DAX index family. As a result of the review, Krones AG shares are to be promoted from the SDAX to the MDAX index with effect from 18 December 2023, thus returning to the 50-share mid-cap index after only three months.

“We are pleased that Krones shares are now rejoining the MDAX and that we have thus achieved our goal of a rapid return to the mid-cap index”, said Krones CEO Christoph Klenk.

Krones shares initially left the DAX index family altogether on 18 September 2023 because the company temporarily ceased to comply with a basic criterion for index membership. The company violated a point of the Corporate Governance Code, thus no longer meeting one of the quality criteria for index membership, explained a spokesperson for German Stock Exchange.

The Corporate Governance Code comprises a list of suggestions and recommendations for good and responsible corporate governance. Recommendation C.10 states, among other things, that the chairman of the audit committee should be independent of the company and the board. At Krones, this position had been held by former Chief Financial Officer Norbert Broger since May 2023.

Krones took immediate action in response and prepared the way back to the DAX index family. The company’s shares were initially relisted in the SDAX index on 9 October.

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