Bidder list for Thyssenkrupp elevators down to two

Struggling German steel-to-submarines industrial conglomerate Thyssenkrupp said Monday it had narrowed a list of potential buyers for its profitable elevator business down to two, not including competitor Kone.

"The company has decided to prioritize further negotiations with two consortia of financial investors," Thyssenkrupp said in a statement, adding it was "on the home stretch".

On the Essen-based group's list are one consortium bringing together American private equity firms Blackstone and Carlyle and the Canadian Pension Plan Investment Board, while the other is made up of US-based Advent and British-headquartered Cinven.

"The objective is to reach an agreement quickly on a majority or full sale," Thyssenkrupp said, although "if no agreement can be reached with a bidder, an IPO (stock listing) remains an option." Bosses hope that selling off the elevators division will supply the cash needed to rebuild other areas of Thyssenkrupp's business, which range from raw steel to submarines and construction materials.

The group as a whole lost 304 million euros in its 2018-19 financial year, prompting chief executive Martina Merz to declare the elevators sale her "priority" in January.

Shares in Thyssenkrupp fell on the news, losing 2.1 per cent to trade at 10.96 euros (USD 11.88) around 3:45 pm in Frankfurt (1445 GMT).

Monday's decision comes as a surprise as Finnish elevator competitor Kone had long been seen by observers as a strong contender to take over the German group's lifts arm.

Kone previously confirmed press reports it had bid around 17 billion euros for the unit.

But a tie-up could have raised competition concerns by bringing together two of the industry's biggest players.