Corporate trinitarianism: Siemens’s spin-offs
Siemens’s second-quarter results, due today, come in the midst of the biggest transformation in the company’s 172-year history. Once a sprawling conglomerate, it is being split into three. First Healthineers, a maker of medical technology, which announced on Sunday that it is buying Varian, an American oncology specialist, for $16.4bn, was spun off in 2018. In September, Siemens’s gas-and-power unit will become Siemens Energy, which just leaves the core company, focused on industrial-automation software and smart infrastructure. The listing of Siemens Energy is likely to be the last big move of Joe Kaeser, who steps down as chief executive in February. The disaggregation of the company is his legacy, and all three new businesses could be listed on the DAX, the index of Germany’s 30 biggest listed companies, in the near future. How did he pull it off? He persuaded shareholders that conglomerates foster mediocrity because of their inherent lack of focus.