Surprising onlookers, and what The Associated Press
calls a move that caught the financial district off guard, BP plc (NYSE:BP) named Sony Ericsson's Carl-Henric Svanberg (pictured) as
its chairman. BP has been looking for a new one for about two years now.
Former Rio Tinto plc (NYSE:RTP) chairman Paul Skinner was thought to be in line for the job, but he decided to stay with Rio after Jim Leng -- deputy chairman of India's Tata Steel Ltd. -- decided not to take the Rio post as the debt-laden mining company contemplated a huge and
controversial Chinese investment.
BP CEO Tony Hayward -- who became chief in 2007 and slimmed the company down -- commented on Svanberg's restructuring skills. In a statement, Hayward said they shared views on many aspects of global business and that Svanberg "is a businessman of international stature who is recognized for his transformation of Ericsson." The AP story said Europe's second-largest oil company is expected to tap Svanberg's experience in emerging markets and in dealing with governments as it continues to shift the focus of its downstream business to Eastern Europe and other developing countries.
Svanberg's appointment comes at a time when oil prices are rebounding and sector
heavyweights are acquiring. Most recently, China's state-owned Sinopec Group said it was
acquiring Addax Petroleum Corp. for $8.4 billion.
Svanberg, a newcomer to the oil industry who is chairman of Sony Ericsson and a nonexecutive
director of Melker Schörling AB, will join the BP board as
chairman-designate and a nonexecutive director on Sept. 1. He will
step down at year's end after a seven-year tenure as Ericsson CEO and
as Sony Ericsson's chairman, and succeed Peter Sutherland as chairman of BP
on Jan. 1.
Hans Vestberg, CFO and executive vice president at Ericcson, will
replace Svanberg as president and CEO at that company. -
Baz HiralalGo to the AP storySee the BP announcement
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