The former head of the supervisory board and current CEO is leaving Thyssen-Krupp.
(Photo: dpa)
Dusseldorf, Berlin Change in leadership at Thyssen-Krupp: CEO Martina Merz is leaving the group at the end of May. The Essen-based industrial group announced on Monday afternoon that the 60-year-old had asked the supervisory board to talk about an amicable termination of her mandate. The personnel committee of the control body wants to comply with the request.
Merz has been CEO of the traditional industrial group Thyssen-Krupp since October 2019. Her contract was only extended until 2028 in May 2022. “The planned strategy will be continued – only with someone who has a different competence profile,” the company said on request. The head of the group had already explained to the group’s supervisory board last year that she did not see it as her life plan to be CEO of Thyssen-Krupp permanently.
As a successor on June 1, the personnel committee proposed the current interim boss of the auto supplier Norma Group, the Spaniard Miguel Angel Lopez Borrego. He only took over the management at Norma on January 1st of the current year. Borrego previously worked at Siemens, among others.
The interim boss of the Norma Group takes over in Essen.
(Photo: PR)
In the run-up to the change in management, there had been a dispute on the direction of the group strategy in the board of directors as well as criticism of Martina Merz from the employee side. Especially with regard to the reorganization of the industrial group and the spin-off of the steel business, Merz was increasingly accused of lack of planning.
Parts of the management and the IG Metall trade union want to hold on to the steel business – this group opposed the CEO, sometimes more, sometimes less openly. The advocates of keeping the steel division in the group had accused Merz that their sales plans were born more out of desperation than as part of a sustainable strategy. Merz speaks of Thyssen-Krupp as a “Group of Companies”.
M&A experience of the new Thyssen Krupp boss is crucial
Under the umbrella of a holding company, each area should do its business independently. However, this model fails in reality. The announcement of the resignation initially caused the shares of the industrial group to collapse by more than eight percent.
People familiar with the process report that against the background of the steel business becoming independent, Borrego’s M&A experience in particular is said to have been decisive for the possible successor. Borrego should now promote the sale of the steel division.
>> Read also: Sharp criticism at the special meeting on the spin-off of the steel division
“In Miguel Ángel López Borrego, we have gained an international manager with broad industrial experience in the areas of digitization and Industry 4.0 as well as very experienced finance and M&A experts for the future management of Thyssen-Krupp,” explained Siegfried Russwurm, Chairman of the Supervisory Board of the group , in the company’s stock market release. “With him at the helm, we will continue on the path of transformation based on the strategic lines that have been developed. That is challenging, but necessary.” The restructuring of Thyssen-Krupp is not yet complete.
The outgoing CEO explains that a lot has been achieved in the restructuring of the group in recent years. Above all, with the sale of the elevator business, financial freedom has been developed. “Significant strategic decisions have been made,” said Merz. Promising talks have been started with possible partners for making steel independent. “In the interest of the company, I want to pave the way for this focus.”
More: Thyssen-Krupp at odds over sale of steel division – CVC only offers one euro.