Siemens’ CEO Joe Kaeser rejected claims the German organization is breaking up; saying he sees this as an opportunity for other areas of business within the organization to grow, comparing Siemens to a “fleet of ships,” Reuters reports.
Here’s what you need to know:
1. Mr. Kaeser said the company's individual branches would "thrive under its own steam," but still be umbrellaed under the Siemens brand.
He said, “Looking back, no one will ask who broke up what or built new, but rather only whether we made the company competitive for the next generation. We are not breaking anything up, we are building
new companies.”
2. Recently, Siemens announced the listing of a minority of its healthcare business on the stock exchange. Market analysts predict the soon to be listed Siemens Healthineers to grow to be larger than the
company’s core industrial business.
3. Turning Healthineers into its own business is Mr. Kaesers mores radical step since becoming CEO in 2013. The newly created organization is expected to be valued at $47 billion.
4. Mr. Kaeser chose to float the business to enable the healthcare division to raise its funds independently for future acquisitions and investments within the healthcare sector.
5. Currently, Healthineers is the most profitable of the company’s divisions. By separating Healthineers, Siemens will remove the ‘conglomerate discount’ on its valuation.