Thyssenkrupp evaluating Carlyle’s offer for marine division, sources say

Thyssenkrupp evaluating Carlyle’s offer for marine division, sources say

© Reuters. FILE PHOTO: A view of the ThyssenKrupp headquarters in Essen, Germany November 22, 2023. REUTERS/Jana Rodenbusch/File Photo

(Reuters) – Thyssenkrupp said on Tuesday it was evaluating the potential partial sale of its maritime unit to investment firm Carlyle.

“Thanks to the active participation of Carlyle, we are now taking the necessary next step and beginning the open evaluation phase of the relevant business activities,” said Volkmar Dinstuhl, member of the management board of Thyssenkrupp (ETR:), in a statement.

The German industrial conglomerate is trying to sell a roughly 25% stake in its marine systems unit, which makes submarines and frigates, mainly because of the burden of providing billions of euros in guarantees to customers.

A sale to Carlyle is one of several options the company is currently considering, Dinstuhl added.

At the same time, negotiations are underway with the German government on state participation in Thyssenkrupp’s maritime activities, the industrial conglomerate said.

Germany’s Economy Ministry was not immediately available for comment.

State bank KfW was considering taking a stake in the warship division, it announced in early February.

The Carlyle deal could be valued at around 1.5 billion euros ($1.63 billion), including debt, Bloomberg reported earlier, citing sources familiar with the matter.

Thyssenkrupp shares, which had risen 2% premarket in Frankfurt, were up 0.7% at 0803 GMT.

($1 = 0.9206 euros)

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