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Power Corp. says brothers Andre and Paul Desmarais Jr. will retire from their long-serving roles as co-CEOs of the management and holding company.

The Montreal-based company said the two, who have held the positions since 1996, will continue to play an active role in the governance of the company and maintain their positions as deputy chairman and chairman of the board.

Power Corp. said the board will appoint R. Jeffrey Orr, current president and chief executive of Power Financial Corp., as president and CEO of Power Corp.

The firm also announced a major reorganization and simplification of its corporate structure by eliminating the dual-holding company structure to bring Power Financial Corp. into the fold of Power Corp. As a result, Power Financial Corp. will be delisted.

Power Financial shareholders will be issued 1.05 Power Corp. shares and one cent for each of their shares.

The company says that along with the simplified structure, it plans to implement a significant near-term operating cost reduction plan, reduced financing costs, and a dividend increase.

In a research note Friday, DBRS called the reorganization “favourable” and said it would allow for a simpler and less expensive corporate structure.

The ratings agency said Orr’s appointment as CEO was a positive, providing management continuity.