By Nina Trentmann 

As Thyssenkrupp AG gets closer to naming a new finance chief, the new appointee faces the tough task of preparing the German industrial conglomerate for a split amid a potentially worsening global economy.

Thyssenkrupp's personnel committee said Friday it will propose to the supervisory board the appointment of Johannes Dietsch as chief financial officer. He would be responsible for financial functions such as controlling, accounting, taxes, information technologies, purchasing and global shared services.

He will take over the role from Guido Kerkhoff, who was promoted in July as chief executive of the maker of elevators and industrial components.

Thyssenkrupp in September announced it would split into two listed companies following pressure from activist shareholders Cevian Capital AB and Elliott Management Corp. One entity would comprise Thyssenkrupp's materials operations and the other hold its capital goods business, a change intended to boost returns and save costs. It could also help the company's lagging share price.

The Essen and Duisburg-based company is also in the process of merging its European steel operations with Tata Steel Ltd.

Mr. Dietsch served as chief financial officer of German chemicals giant Bayer AG until May and in that capacity orchestrated the financing for the $63 billion Monsanto Co. takeover.

His experience in carving out assets at Bayer will be crucial in readying the separation of the two entities at Thyssenkrupp, analysts said.

"He brings the right tool kit and is well-versed in splitting operations, " said Christian Georges, an analyst at Société Générale SA.

That could strengthen investor confidence in the company, said Marc Gabriel, an analyst at Bankhaus Lampe KG.

Part of the new CFO's task involves the allocation of the company's current net debt of about EUR2.36 billion ($2.67 billion) across the two entities, as well as setting up a holding structure for the time before the split expected to happen in early 2020, Mr. Georges said.

Mr. Dietsch will have to ensure that bondholders are comfortable with the new debt allocation and distribute assets so that the capital goods business is rated investment grade, Mr. Georges said. "It's a big task within a limited time frame," he said.

Potential economic weakness globally could complicate matters for Mr. Dietsch, he said. Thyssenkrupp is active in nearly 80 countries and focuses on the Americas, India, China, the Middle East and Africa.

Mr. Dietsch is expected to receive a three-year contract and would assume the role in February, according to Thyssenkrupp. Compensation details weren't available.

"Johannes Dietsch is an excellent choice to complement the executive board of Thyssenkrupp AG," Bernhard Pellens, chairman of Thyssenkrupp's supervisory board, said in a press release. "He brings exactly the skills and experience needed to manage the separation process."

Thyssenkrupp shares, which were trading at EUR15.59 in midday trading in Germany, are down 41.2% from a high in late January, according to FactSet.

Write to Nina Trentmann at Nina.Trentmann@wsj.com

(END) Dow Jones Newswires

December 14, 2018 14:15 ET (19:15 GMT)