A Note on the Sale of Thyssenkrupp’s Elevator and Escalator Business
In May 2019, first press reports emerged that Thyssenkrupp AG may potentially sell parts of its elevator division, which produces both elevators and escalators. In early September 2019, Thyssenkrupp AG announced that it also considers the option to sell the entire elevator division as a whole. Kone Corporation, a major player in the elevator and escalator industry (“E&E industry”), has publicly signalled its interest in an acquisition. The Company further signalled that in case of a successful bid it would divest the complete European elevator business of Thyssenkrupp to the private equity firm CVC for antitrust reasons. Several other buyout groups compete with Kone without facing similar antitrust issues. We use the “battle for Thyssenkrupp’s crown jewel” as an opportunity to discuss competitive effects of mergers in highly concentrated markets.