Thyssenkrupp mulls separation of major businesses, no formal decision yet

Shares in the group rose by more than 5% on the news to hit a seven-week high

German conglomerate Thyssenkrupp is considering a major overhaul which involves a separation of individual business units, two people familiar with the matter told Reuters on Thursday.

The group which makes elevators, submarines, industrial plants and automotive components, has been under pressure to simplify its sprawling conglomerate structure, and could make a decision on the matter as soon as this week, the people said.

No formal decision has been reached, and talks could still fall apart, the sources said.

Shares in the group rose by more than 5 per cent on the news to hit a seven-week high. Shares in Finland's Kone, which has been considered a potential partner or suitor of Thyssenkrupp's elevator business, also jumped on the news.

Thyssenkrupp declined to comment.

The group has been in crisis-mode ever since the sudden departure of both its Chief Executive and Chairman in July, bowing to pressure from shareholders that have long demanded a significant improvement in the group's operating performance.

Thyssenkrupp has in the past said it wants to focus on strengthening its capital goods business, which comprises elevators, car parts and plant engineering.

Thyssen's strategy evaluation comes as rival conglomerates including Siemens and General Electric are slimming down their businesses.