According to Bloomberg Law, Thyssenkrupp will shrink and focus on higher-margin businesses as the coronavirus pandemic speeds the break up of one of Germany’s last mega-conglomerates.
Thyssenkrupp announced it’s considering the sale of units that make steel and submarines as it fights for survival. Once a byword for German engineering prowess, Thyssenkrupp will be gradually split apart as CEO Martina Merz follows the path taken by other behemoths from Siemens to General Electric.
“CEO Merz is moving to a more aggressive mode, which will see some continued restructuring but also potential widespread corporate deals, which we believe are likely to transform the group rapidly,” Christian Georges, director of metals and mining research at Societe Generale SA, said in a note.
Merz’s strategy is aimed at reviving the group after the US$19 billion sale of its elevator unit closes later this year. The firm had hoped to use some of the proceeds from that deal to boost ailing units, although worsening finances are gnawing at the lifeline. Merz, who took over the helm of Thyssenkrupp after consecutive years of CEO departures, said the company needs to be leaner and fitter to survive once it no longer has income from the elevator business.
“We need to lower costs, and improve performance across all our business units,” Merz said on a conference call on Tuesday, May 19.
Full Content: Bloomberg
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI