Thyssenkrupp to split into two

India Business Journal - - GLOBAL WRAP-UP -

Ger­many's Thyssenkrupp will split into two com­pa­nies, one fo­cused on cap­i­tal goods and the other on ma­te­ri­als. The de­ci­sion gives in to years of in­vestors' pres­sure as the com­pany un­der­goes its big­gest over­haul since the merger of Thyssen and Krupp 20 years ago. The group has said that it will spin off its el­e­va­tors, car parts and plant en­gi­neer­ing busi­nesses to share­hold­ers. Thyssenkrupp Ma­te­ri­als will hold the re­main­ing as­sets and ini­tially re­tain a mi­nor­ity stake. The plans are a ma­jor vic­tory for ac­tivist share­hold­ers Ce­vian and El­liott, which have de­manded changes to im­prove the group's op­er­a­tional per­for­mance, point­ing to its overly-com­plex con­glom­er­ate struc­ture.

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