Mega deal sparks crisis at German steelmaker

Frankfurt am Main. Turmoil has erupted at German industrial giant Thyssenkrupp after a mega deal merging its steelmaking arm with India’s Tata, with its bosses quitting amid an acrimonious battle with shareholders on whether to break up the venerable institution.

The leadership chaos sparked fears of further job losses as some key investors push for redical surgery on the two-century-old conglomerate that makes everything from elevators and submarines to car components, turnkey industrial installations and steel.

“It is clear that Thyssenkrupp is at a crossroads... aggressive restructuring may be in the cards,” analysts at US investment bank Jefferies wrote Tuesday after supervisory board chief Ulrich Lehner followed chief executive Heinrich Hiesinger out of the door late Monday.

Hiesinger, who quit earlier in July, and Lehner were both fierce defenders of keeping Thyssenkrupp’s sprawling structure intact.

“I take this step consciously to enable a fundamental discussion with our shareholders on the future of Thyssenkrupp,” Lehner said in his parting statement.

“A break-up of the company and the related loss of many jobs is not an option,” he warned in a final swipe at his opponents.

Tracing its roots back to 1811 and a household name of German industry for over a century, Thyssenkrupp booked 41.5 billion euros ($48.7 billion) of revenue in its 2016-17 financial year and employs some 159,000 people worldwide.