Thyssenkrupp is choosing bidders to buy elevator unit


German industrial engineering and steel production giant, Thyssenkrupp is now looking to choose the preferred buyer for its elevator business.

According to a report by Reuters News, Thyssenkrupp has shortlisted about six potential bidders by sharing its information memorandums (IM), a detailed package of its financials in a process that could last up to four weeks.

The Reuters report claimed that bidders include Brookfield in alliance with Blackstone and Carlyle. Another consortium consisting of Advent, Cinven and the Abu Dhabi Investment Authority has received the IM.

Other bidders private equity firms such as Hellman & Friedman also received the information package although Reuters reported that a source said the investor was an unlikely bidder for the asset.

The competitor to Thyssenkrupp, Finland’s Kone and Japan’s Hitachi are the only strategic bidders in the process, the people added.

Sources told Reuters last month that Kone might team up with a private equity partner to mitigate antitrust risks, for example by selling on assets in regions where there is great overlap with Thyssenkrupp, most notably in Europe.

Kone is reportedly talking to CVC about a tie-up but no decision has been made, the people said, adding Kone has hired law firm Clifford Chance to look specifically into how antitrust concerns can be tackled in a possible deal.

The law firm also acted as Kone’s advisor in connection with a past European cartel probe against elevator makers, which included U.S.-based Otis, Thyssenkrupp and Switzerland’s Schindler.