In a recent interview, Siemens CEO Joe Kaeser told Bloomberg he wants to “massively deconsolidate” its struggling power and gas division to make the parent company more manageable and less risky. Siemens will seek to spin off ~75% of the unit.
“I do expect a big majority from shareholders to spin off the energy business,” Kaeser says. “Over time, it could be all the way down to somewhere around 25% plus one” share.
Sales in the power and gas business totaled €19.3B ($21.4B) in the last fiscal year, making it Siemens’ largest division by revenue, but operations have been hit by market shifts away from large power plants to more renewable resources.
The CEO indicates a willingness to extend his contract if his transformation plan runs out of time, saying “I would never leave the company behind in disarray… In the totally unexpected and unlikely case that it doesn’t work out then, I could imagine to commit to two more years.”
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