The steel and technology group Thyssenkrupp changes management in difficult times: The controversial CEO Martina Merz asked the supervisory board to terminate her contract, the Essen-based MDax group surprisingly announced on Monday. Miguel Ángel López Borrego is scheduled to take over as his successor in June. The Spaniard, born in Germany in 1965, has been head of the Hessian automotive and industrial supplier Norma since January, although he was only to hold this office on an interim basis until Norma found a permanent solution. Before that, the business administration graduate managed Siemens’ business in Spain.
Merz has led the company with its 96,000 employees since autumn 2019, having previously headed the supervisory board. The engineer wanted to convert the conglomerate into a group of largely independent companies; ThyssenKrupp’s Essen headquarters were to be merely a holding company. In addition, the 60-year-old was looking for buyers or partners for important sectors, such as the steel business. But this course was controversial – and Merz made much slower progress than she would have liked.
At a special meeting of the supervisory board a good three weeks ago, there was sharp criticism from employee representatives: There is no progress and Merz must “finally” present a new overall concept, according to a protocol of the meeting that IG Metall sent to its works councils. Some employee representatives and also parts of the management are particularly skeptical about the plan to separate from the steel division. Instead, these critics want to make steel the center of ThyssenKrupp and dump other businesses. The company is the largest steel manufacturer in Germany.
In Merz’ environment, however, it is emphasized that the withdrawal is not the result of these attacks, but is related to their life plans. The chairman of the supervisory board, Siegfried Russwurm, says about the change that the company will “continue the path of transformation based on the strategic lines that have been developed” with the new boss – that doesn’t sound as if López Borrego should make a change in strategy.
The debts threatened their livelihood
When Merz took over as CEO, the debt was so high that it threatened the existence of the group. So the boss quickly sold the company’s elevator business for €17 billion to ease the stifling debt burden. Most recently, Merz was not only looking for buyers or partners for the steel division, but also for the Marine Systems armaments business, the world market leader for non-nuclear submarines. Merz also wants to list a minority stake in the hydrogen subsidiary Nucera. But because of the Covid crisis and the war, the stock market environment has been too bad so far. And when it comes to steel, courting buyers is also tough. However, Thyssenkrupp has now “started promising talks with possible partners” for the division, Merz is quoted as saying in the announcement on her farewell.
Chairman of the Supervisory Board Russwurm praises her successor as an experienced expert on takeovers. López Borrego will be able to put this expertise to good use.