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Report: Kone mulls joint bid for thyssenkrupp's elevator business

KONE Oyj is studying putting up a joint bid with a private equity firm for thyssenkrupp AG's elevator business, Reuters reported Sept. 5, citing three people familiar with the matter.

One of the people said that an asset sale to the partner could ease the widely expected antitrust risks. However, there is still a possibility that the Finnish escalators and elevators manufacturer will make a solo offer.

ThyssenKrupp recently kicked off the sale process for the elevators business, informing potential bidders, including seven private equity firms, that it is open to both minority and majority offers.

Kone CEO Henrik Ehrnrooth described thyssenkrupp's elevator business as a perfect fit for the company, saying a merger would allow it to better handle digital challenges, the newswire wrote, citing German newspaper Rheinische Post.

According to a previous report, the firm was working with Bank of America to explore options, including a possible deal comprising cash and shares.

In the event of a merger, Kone expects synergies of about €600 million per year, and according to Barclays analysts, thyssenkrupp will realize synergies of between €3 billion and €4 billion.