National conflicts in a multinational: The case of the Dutch-German AKU/VGF/Akzo, 1920s to 1970s

Abstract

Bringing together managers from different countries and cultures after international mergers is often seen as beneficial for the development of multinational companies. The article refers to existing approaches in the literature on modern cultural management and the organisation of multinationals to develop a framework explaining when and in which way national diversity affected the composition of the governing bodies and the strategy of the company. It therefore focuses on the nationality of owners and managers and asks to what extent corporate nationalities persisted after the merger and if single national groups determined the strategy. Based on original archival material the case of the Dutch-German man-made fibre manufacturer AKU/VGF/Akzo illustrates that its ownership structure depended to a large extent on political circumstances and that changing corporate nationalities shaped the governance of this company. Our study contributes to opening-up the black box of the composition and organisational structure of multinational boards and the locus of decision making within multinationals.

Keywords:

• Multinationals
• nationality
• chemical industry
• man-made fibres
• ownership
• control

Disclosure statement

No potential conflict of interest was reported by the authors.

Archives

AkzoNobel NV Historisch Archief (ANHA)

Gelders Archief, Arnhem (GA)

Historisches Archiv der Deutschen Bundesbank, Frankfurt am Main (HADB)

Stiftung Rheinisch-Westfälisches Wirtschaftsarchiv zu Köln (RWWA)

Wirtschaftsarchiv der Universität zu Köln (WAUK)

Cited archival sources

ANHA (1952–1972). Transfer of Registered Office: Enka Stichting 1952–1972. 3261. ANHA.

GA (1969). AKU-KZO inz. Akzo (1969). Blok 3169 (AKU-Archives), Box 1040. GA.

GA (1972a). Herstructurering Enka Glanzstoff. Nr. I-VII (1972). Blok 3169 (AKU-Archives), Box 905-911. GA.

GA (1972b). Stellungnahme zum Strukturplan (August 1972). Blok 3169 (AKU-Archives), Ordner 908. GA.

GA (1974). Enka Glanzstoff. Ein europäisches Unternehmen (August 1974). Blok 3169 (AKU-Archives), Box 670. GA.

HADB (1949). Transaktion zwischen der Deutschen Bank und der niederländischen Handelsmaatschappij H. Albert de Bary & Co N.V., Amsterdam unter Einschaltung der Reichsbank und des Reichswirtschaftsministeriums (1949). B 330/4600/1. HADB.

RWWA (1953). Vertrag zwischen AKU und VGF (1953, July 9). 195-A2-39. RWWA.

RWWA (1961). AKU Minutes of the Meeting of the Concern Council, Arnhem (1961, February 23). 195-A2-39. RWWA.

RWWA (1967a). Hornef/Karus: Gedanken zur möglichen Zusammenarbeit zwischen AKU und Glanzstoff (1967, June 16). 195-A2-43. RWWA.

RWWA (1967b). Notiz über Besprechung mit Soesbeck (1967, July 19). 195-A2-53. RWWA.

RWWA (1968/69). Notiz betr. Staatsmijnen (1968, October 14), Zusammenarbeit AKU-Staatsmijnen Chemie (1968, November 11), Kruisinga to Vaubel (1968, November 20), Notiz Vits (1969, March 26). 195-A2-40. RWWA.

RWWA (1969a). Regelung zwischen AKU N.V. und Glanzstoff AG (1969, May 23). 195-A2-32/33. RWWA.

RWWA (1969b). Notes of the secretary of the meeting of the supervisory council and the board of management of AKU (1969, August 26). 195-A6-23. RWWA.

RWWA (1970). Notiz für den Enka-Glanzstoff-Vorstand (1970, January 19). 195-A2-29. RWWA.

RWWA (1971). Notiz von Vaubel (1971, May 7). 195-C1-26. RWWA.

RWWA (1971–1978). Protokolle Akzo-Stichting (1971–1978). 195-A6-21. RWWA.

RWWA (1972a). Bericht für die Führungskräfte Nr. 2/1972 (1972, April 6), Mitteilung des Betriebsrates (1972, May 15). 195-B0-61. RWWA.

RWWA (1972b). Umfimierung Glanzstoff AG in Enka Glanzstoff AG (1972). 195-B0-54. RWWA.

RWWA (1972c). Stellungnahme Enka Glanzstoff-Vorstand zum Gutachten der Sachverständigenkommission (1972, August 16). 195-B0-62. RWWA.

RWWA (1972d). Dokumentation der Ereignisse (1972, September 21). 195-B0-62. RWWA.

RWWA (1972e). Strukturplan 1972 – Geheim – Vorgänge ab 18.9.72. 195-Z0-40. RWWA.

RWWA (1972f). Zempelin to Wolff (1972, September 29). 195-BO-62. RWWA.

RWWA (1975). Enka Glanzstoff Vorstand (1975, August 29). 195-B0-59. RWWA.

RWWA (1976). Interessenausgleich und Sozialplan (1976, February 6). 195-B0-59. RWWA.

RWWA (1978). Protokolle Akzostichting (1971–1978). 195-A6-21. RWWA.

RWWA (1983). Chronik Enka-AKU-Akzo 1914–1983. 195-L3-22. RWWA.

WAUK (1973). Annual Report Akzo 1973. WAUK.

WAUK (1975) Annual Report Enka Glanzstoff 1975. WAUK.

Notes

1 Concern (Konzern) in Dutch and German, refers to a group of a corporation and different owned or economically controlled subsidiaries and related companies (pyramids). We use the term group if we emphasise the whole Konzern. Note that this is different from a business group as a collection of legally independent firms with a diversified product portfolio and individual or family, but no corporate ownership.

Cf. for the importance of a national image of a whole industry: Jones/Mowatt 2016.

2 Although the responsibilities of the two bodies are legally defined, there are some overlaps. For example, the management board has to cooperate with the supervisory board in long term strategic planning; personnel changes from the management board to the supervisory board reinforce this trend. See Gehlen 2019.

3 Blüthgen was chairman of the VGF managing board (1926–1930) and chairman of the VGF supervisory board (1930–1933) and became member of the AKU managing board (1929–1931); Hartogs was member of the Enka managing board (1911–1929) and of the AKU supervisory board (1929–1932).

Vaubel was part of VGF’s management. As a consequence, his book presents the management’s perspective. However, his book is written close to the sources, contains long quotations, and reflects the company’s development as it even can be obtained from other original sources.

4 The remaining shares were distributed among France and other countries.

5 Herrmann had been a member of the VGF managing board since 1928 and became chairman of the VGF managing board (1937–1939); furthermore, he became member of the AKU managing board (1933–1935) and of the AKU supervisory board (1935–1939).

6 Odrich was member of the VGF managing board (1934–1939). Henkell was the son-in-law of Fentener van Vlissingen, co-owner of the sparkling wine company Henkell in Wiesbaden and brother-in-law of the German Minister of Foreign Affairs Joachim von Ribbentrop. After Henkell died at the front in June 1940, Werner Carp took his position.

7 ‘Eine selbständige deutsche Glanzstoff-Gruppe der AKU, entsprechend den Verträgen von 1929, ist ein an sich verständliches nationales Ziel’ (Vaubel, 1986a, p. 88).

8 ‘zufällige Konstruktion’and ‘Schuman-Plan auf dem Kunstfasergebiet’ (Vaubel, 1986a, p. 104).

9 It was only in 1962 when Abs entered the AKU supervisory board – as a private individual, not as a representative of the German group – that this situation changed.

10 ‘…alle auf der AKU-Seite maßgebenden Herren in erster Linie als Holländer denken und Stellung nehmen’ (Vaubel, 1986a, pp. 130–131).

11 ‘Die früheren nationalen Grenzen, die in einem gewissen Umfang zwanglos eine Arbeitsteilung nahelegten, verlieren marktmäßig – zumindest innerhalb der EWG – immer mehr an Gewicht. Durch den Wegfall der Zölle innerhalb der EWG, den Wegfall anderer Handelshemmnisse […], den Fortfall der Polyesterpatente und zunehmende Unternehmensverflechtungen unserer Abnehmer über nationale Grenzen hinweg tritt eine wachsende Verflechtung der europäischen Märkte ein. Zwischen AKU und Glanzstoff entsteht dadurch ein Konkurrenzverhältnis in früher ungekanntem Ausmass. […] Das Auftreten von DuPont, ICI und Monsanto in Kontinentaleuropa sowie das Vordringen der großen Chemiegesellschaften wie Bayer, Hoechst, Rhône-Poulenc und Montedison lässt Wettbewerbsformen entstehen, die ein Überdenken der optimalen Unternehmensgrösse für den zukünftigen Wettbewerb erforderlich machen’ (RWWA, 1967a).

12 According to Klaverstijn the official code name for the negotiations with DSM on the Dutch side was ‘DAKMUS’; the German side used the code name ‘Brize’.

13 Numerous sources are available on the merger negotiations. Cf. AKU-VGF Madrid (01/1968–12/1972). Blok 3169 (AKU-Archives), Box 732. GA; Soesbeek to Vorstand der Glanzstoff AG (1969, May 23), Regelung zwischen AKU N.V. und Glanzstoff AG (1969, May 23), Vertrag zwischen AKU N.V., Glanzstoff AG und Enka B.V. (1969, July 16). Blok 3169 (AKU-Archives), Box 1040. GA; Protokoll Kommission Madrid (1968, September 16), Protokoll Kommission Madrid (1968, November 26), AKU an die Aktionäre der Glanzstoff AG (1969, June 19). 195-A2-32/33. RWWA.

14 In addition to the parent company in Wuppertal, the German group consisted of the VGF plants in Oberbruch, Obernburg and Kelsterbach, the Spinnfaser AG in Kassel, the Bemberg plant in Wuppertal, the factory of Glanzstoff Köln GmbH in Cologne and the KUAG plants in Wuppertal-Barmen, Waldniel and Konz. Cf. Annual Report Glanzstoff 1964.

15 Cf. the extensive notes in: Presseinformation (1975, July 29), Mitteilung der IG CPK (1975, August 27). IG CPK-Archiv, Box: Enka Glanzstoff ‘75. Archiv für soziale Bewegungen, Bochum; Presse-Information (1975, September 26; 1975, October 14), Letter of IG CPK (1975, October 8), Akzo-Aktionärsbrief (1975, November 19). 195-B0-59. RWWA; IG Chemie: Internationale Lösungen geplatzt – Nationale Verhandlungen begonnen (1975, December 1). 195-Y8-22. RWWA.

16 Cf. furthermore: Vertrag zwischen Akzo N.V., Enka AG und Enka B.V. (1977, August 24). Blok 3169 (AKU-Archives), Box 1040. GA; Herstructurering Enka Groep (1977). Blok 3169 (AKU-Archives), Box 919. GA; Information für die Führungskräfte (4/1977). 195-B0-58. RWWA; Enka Glanzstoff AG an Aktionäre (Juli 1977). 195-B4-1-119. RWWA.

Additional information

Funding

This work was supported by the Deutsche Forschungsgemeinschaft [grant number DFG RA 469/13-1].

Notes on contributors

Christian Marx

Christian Marx is a lecturer at the University of Trier and working on a research project “From the Reichsbank to the Bundesbank” at the Leibniz Institute of Contemporary History in Munich. In 2020, he finished his habilitation on chemical multinationals in Western Europe since the 1970s; he is interested in European contemporary history, multinationals, business history, and social networks.

Ben Wubs

Ben Wubs is Professor of International Business History, at the ESHCC Erasmus University Rotterdam. He is engaged in various research projects related to multinationals, business systems, transnational economic regions, Dutch-German economic relations, and the transnational fashion industry.