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BERLIN – Germany's Thyssenkrupp AG said on Sunday that interim managing director Guido Kerkhoff would remain as CEO, with the group's supervisory board approving its plan to divide the conglomerate into two separately listed companies.
The supervisory board of Thyssenkrupp on Sunday unanimously approved the plan presented last week under the leadership of Mr Kerkhoff to divide Thyssenkrupp into two independent companies, one grouping the company's business activities and others.
The board member, Bernhard Pellens, tasked with finding a new CEO and chairman, has been appointed chairman of the supervisory board.
"The concept was developed by the Executive Council and for this reason, it is only natural for this Executive Council to implement this plan," Pellens said in a statement.
The appointment of MM. Kerkhoff and Pellens put an end to a management crisis that has lasted for several months in the troubled German industrial group, triggered by a conflict between the former management and activist shareholders on the future of the company.
Former CEO Heinrich Hiesinger left the company abruptly in July, followed shortly after by President Ulrich Lehner, citing a lack of support from shareholders who had sought to improve their profitability and simplify the structure. Mr. Kerkhoff, the former CFO of the group, has since been General Manager.
Now, Mr Kerkhoff faces the difficult task of implementing one of the most dramatic revisions in the group's history since the merger of steelmakers Thyssen and Krupp in 1999, who formed Thyssenkrupp.
In a bold move that surprised analysts and sparked stock rally, Kerkhoff unveiled last week the plan to allow Thyssenkrupp to remain independent while satisfying shareholders who had advocated radical changes or even a break more large.
The proposal was quickly supported by the group's main stakeholders, including Swedish active investor Cevian Capital AB, which holds about 18% of the company's capital. reason of insufficient results.
The largest German union, IG Metall, said Friday that the proposed split was an "opportunity to prevent a fearful break" of the company but demanded that the plan be implemented without any deletion. jobs. Mr Kerkhoff told German television that he was not planning to cut jobs.
Thyssenkrupp now has about 18 months before shareholders are asked to vote on the split in order to detail its plans.
"It's clear that the announcement is a step in the right direction to bring out hidden value, but we're also asking ourselves serious questions," such as the costs of splitting and managing new businesses, Carsten said Riek, analyst at UBS, notes to investors.
Mr. Kerkhoff, 50, started his career in the accounting department of the German utility VEW AG before joining the Bertelsmann media group. From 2002, he rose through the ranks at Deutsche Telekom, leading the group's European business until 2011, when he was appointed chief financial officer at Thyssenkrupp.
Thyssenkrupp said the post of CFO and two open supervisory board seats still need to be filled.
Write to Ruth Bender at [email protected]
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