Battle For Thyssenkrupp Elevators Unit Heats Up

Brookfield Asset Management and a consortium of Advent International, Cinven and the Abu Dhabi Investment Authority remain in the running
The battle for Thyssenkrupp AG’s elevator unit is heating up as rival bidders Kone Oyj and Blackstone Group Inc. position themselves with potential partners for a deal that could fetch more than 15 billion euros ($16.5 billion), people familiar with the matter said.
Kone, the Finnish elevator maker, is in talks with CVC Capital Partners about teaming up in an offer for the business, according to the people. Blackstone and Carlyle Group LP have partnered for their own planned joint bid, the people said, asking not to be identified because the information is private.
Shares of Thyssenkrupp jumped as much as 5% in Frankfurt trading Wednesday. Suitors are still waiting for Thyssenkrupp to make the unit’s detailed financial information available before making bids in the coming weeks, the people said.
A partnership between Kone and CVC would be a way to address significant antitrust concerns, with CVC acquiring elevator assets in places such as Europe where Thyssenkrupp and its Finnish rival have significant overlap, they said. The talks with CVC are one of several partnership options that Kone is exploring, according to the people.
Antitrust Review
CVC is also discussing whether it could bid independently in addition to pursuing a joint offer with Kone, two of the people said. No final decisions have been made, and there’s no certainty the suitors will proceed with formal bids, the people said.
Representatives for Carlyle, CVC and Kone declined to comment. Representatives for Blackstone and Thyssenkrupp weren’t immediately available to comment.
Kone and Blackstone will still face stiff competition from other suitors. Brookfield Asset Management and a consortium of Advent International, Cinven and the Abu Dhabi Investment Authority remain in the running, according to the people. The other strategic bidder is Japan’s Hitachi Ltd., the people said.
Clayton Dubilier & Rice, EQT AB, Permira and KKR & Co. have dropped out of the process, the people said. Representatives for Advent, Brookfield, Cinven, KKR and Permira declined to comment, while a representative for Hitachi said “no formal decision has been made in this regard.” CD&R and EQT didn’t immediately respond to requests for comment.
Replacing Leader
Thyssenkrupp last month named Martina Merz as interim chief executive officer to replace Guido Kerkhoff as it tries to ink a deal for elevators, its most valuable asset, to fund a turnaround. The beleaguered German conglomerate plans to raise much-needed cash from the sale and also restructure or dispose of other units, such as automotive components and heavy plate steel.
The departure of Kerkhoff, who preferred selling only a minority stake in the company’s crown jewel, has fueled speculation that Thyssenkrupp might now be more open to selling the entire business. An initial public offering is also still being prepared.
Kone, whose CEO Henrik Ehrnrooth has said “the complementary fit of these two companies is just second to none,” is looking for creative ways to address competition concerns. Thyssenkrupp wants to avoid a long antitrust review and a repeat from earlier this year when European regulators derailed a planned steel venture with Tata Steel Ltd. Buyout firms would avoid antitrust hurdles, but Kone would potentially be able to make a higher offer and generate more cost savings, the people said.
Buyout firms have been competing fiercely to buy assets being sold by European companies. Earlier this month, a consortium led by EQT completed the acquisition of Nestle SA’s $10 billion skincare division. A slew of private equity firms were also pursuing Bayer AG’s veterinary medicine unit before the German company decided to sell it to Elanco Animal Health Inc.
CVC would be taking a page out of its previous playbook if it teams up with Kone to secure some of the assets. Linde AG and Praxair Inc. won a long U.S. antitrust battle for their $46 billion industrials gases merger last year only after selling significant assets to CVC and its partner Messer Group GmbH.
For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.Middle East M&A Hits 271 Deals In H1 2025, Up 19 Per Cent Despite Global Slowdown: PwC
Middle East M&A rose 19 per cent in H1 2025 to 271 deals, defying a 9 per cent global drop as sovereign wealth fund... Read more
Saudi Arabia FDI Inflows Jump 24 Per Cent To $32bn In 2024
Saudi Arabia’s FDI inflows rose 24 per cent to SR119.2bn ($31.8bn) in 2024, exceeding Vision 2030 targets as non-oil ... Read more
Abu Dhabi Finance Week 2025 Confirms First 300 Global Speakers With $60tn In Assets
Abu Dhabi Finance Week 2025 will host 300 global leaders with $60tn in assets, featuring top names from Netflix, Carlyl... Read more
UAE Announces New Tax Rules For Free Zones
The UAE Ministry of Finance has issued new Corporate Tax rules for Free Zones, expanding qualifying activities and clar... Read more
Qatars Top Banks Post $3.9bn H1 Profit, But Rising Costs Squeeze Returns: Moodys
Qatar’s biggest banks reported a slight rise in first-half profits, but Moody’s Ratings warned that mounting costs,... Read more
Saudi Arabia Launches $400m Fund To Boost Startups And SMEs
Saudi Arabia will refund SAR1.5bn ($400m) in government fees to startups and SMEs through the Estrdad initiative Read more