(Reuters) – The board of directors of Schneider Electric announced on Monday that it had decided to terminate the functions of chief executive of Peter Herweck and, unanimously, to appoint Olivier Blum in his place, citing disagreements over the implementation implementation of the group’s strategy.

“The board of directors has decided to terminate the functions of CEO of Peter Herweck,” indicates the French manufacturer of electrical equipment in a press release, citing disagreements in the implementation of its roadmap, “at a moment significant opportunities.

Peter Herweck, who led Schneider Electric for 18 months, will be replaced by Olivier Blum, currently head of the group’s “energy management” activity and member of the executive committee since 2014.

“For more than 30 years, Olivier Blum (…) has participated in the transformation of Schneider Electric, with intimate knowledge of our company, its operating model and its culture,” underlined Jean-Pascal Tricoire, president of the group, in the press release.

In a brief conference call, Chief Financial Officer Hilary Maxson said the decision was not related to operational issues but was a preventative measure as the group would continue to implement its strategy. current and no major changes were planned.

Over the past few months, the board felt that the strategic roadmap was not being executed decisively, collaboratively and with sufficient speed and that there were also disagreements over the overall management style , she added.

SURPRISE DEPARTURE

Peter Herweck’s departure surprised analysts at many brokers, including those at Berenberg, Stifel, Jefferies and JP Morgan, with the latter noting that the decision comes despite the group’s strong financial performance.

Last week, Schneider reported organic revenue growth in the third quarter and confirmed its full-year outlook.

Berenberg analysts point out in a note that Peter Herweck had worked well operationally and had built a good reputation with buyers, adding that this change seems mainly linked to differences over mergers and acquisitions strategy.

The note also indicates that investors could expect a more proactive approach under the leadership of Olivier Blum.

According to Jefferies analysts, the board did not want the company to lose ground in the electrification, automation and digitalization markets.

Jefferies does not rule out that disagreement over mergers and acquisitions is one of the main reasons for this change.

On the Paris Stock Exchange, around 10:20 GMT, the stock fell 1.93% to 232.25 euros, compared to a gain of 0.34% for the SBF120 at the same time.

(Written by Elena Smirnova, edited by Augustin Turpin)

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