(Bloomberg) -- Embattled steel giant Thyssenkrupp AG has narrowed the list of bidders for its elevator unit, which is expected to fetch more than 15 billion euros ($17 billion), people familiar with the matter said.
Asian private equity firm Hillhouse Capital and Brazilian-American investment firm 3G Capital are out of the running, the people said, asking not to be identified because the information is private. A consortium including Blackstone Group Inc., Carlyle Group LP and Canada Pension Plan Investment Board proceeded to the next round, as did a rival group backed by Advent International, Cinven Ltd. and the Abu Dhabi Investment Authority, they said.
Brookfield Asset Management Inc., which partnered with Temasek Holdings Pte, is also still in the running, the people said. The shortlisted investment firms will be competing with the remaining strategic suitor, Finnish elevator maker Kone Oyj, which teamed up with CVC Capital Partners and has been bidding on a different timeline, the people said.
No final decisions have been made, and Hillhouse and 3G could try and team up with the remaining parties, the people said.
Representatives for Advent, Blackstone, Carlyle, Cinven, CPPIB, CVC, Hillhouse, Kone and Thyssenkrupp declined to comment. Representatives for 3G Capital, ADIA, Brookfield and Temasek didn’t immediately respond or couldn’t immediately be reached for comment.
If one of the buyout groups prevails, a deal for the Thyssenkrupp business could become the biggest private-equity acquisition in Europe in more than five years, according to data compiled by Bloomberg.
The Thyssenkrupp supervisory board is scheduled to meet ahead of the company's Jan. 31 annual general meeting, the people said. The next round of bids is expected around mid-February, according to the people.
Ailing Thyssenkrupp is exploring a sale or initial public offering of the elevator operations, its most valuable unit, to raise cash to fund a turnaround at the steel-to-automotive conglomerate. It’s leaning toward selling the business, though it is also still preparing for the possibility of a listing, the people said.
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