ThyssenKrupp Sells Elevator Division for $19 Billion

The Largest Deal Worldwide Since 2008

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Germany's ThyssenKrupp Group has sold its elevator division to a consortium of Advent and Shinben, one of the largest private equity funds in Europe. The deal is valued at approximately $19 billion (about 23 trillion KRW), making it the largest worldwide since 2008.

According to the Wall Street Journal (WSJ) and others on the 27th (local time), the Advent-Shinben consortium secured the contract with ThyssenKrupp, beating out the Blackstone consortium in a final bidding competition.

The Advent-Shinben consortium agreed to guarantee employment and to grow the elevator business to a global level while maintaining operations in Germany.

With the sale of the elevator division, ThyssenKrupp has gained time to restructure other less profitable business units.

Martina Merz, CEO of ThyssenKrupp, stated in a press release, "This sale has created an environment where ThyssenKrupp can be successfully led."

The ThyssenKrupp Group has been struggling with management difficulties due to the downturn in German manufacturing. The cash secured from the elevator division sale is planned to be used for debt repayment. ThyssenKrupp's debt stands at approximately 22.5 trillion KRW.

ThyssenKrupp has been regarded as a representative of German manufacturing. However, it has not been able to avoid poor performance due to decreased steel demand in Europe and China.

ThyssenKrupp plans to decide by May whether to sell other unprofitable business units such as plants, submarines, and automotive parts.

This content was produced with the assistance of AI translation services.