Thyssenkrupp separates automotive and materials trading units with latest overhaul

Thyssenkrupp announced on Monday that it will separate its automotive, materials-trading and green technologies divisions over the next few years. This is the latest restructuring effort by the German conglomerate.

Thyssenkrupp announced that the move would open the three divisions up to external ownership. It added that it would still remain the majority owner of each business in any future setup.

The company did not specify how the Automotive Technology and Materials Services would be prepared to go on the capital markets. Decarbon Technologies, an enterprise focusing on CO2 reduction will also become independently owned.

Miguel Lopez, CEO of Thyssenkrupp, said: "Such an approach will allow us to maximize the value creation potential and independence of the businesses, and use them in a targeted manner for investments, opportunities on the market, and future growth."

Thyssenkrupp stated that its goal was to become an independent holding company, with shares in different business areas.

The company's shares rose by 6.5%.

Thyssenkrupp prepares its other two divisions for an independent future. Its warship division will be spun off by 2025, while its steel division will become a joint venture of 50:50 with Czech billionaire Daniel Kretinsky. (Reporting and editing by Rachel More, Ludwig Burger and Christoph Steitz)

(source: Reuters)