Germany's RAG joins consortium in Thyssenkrupp elevator auction: sources

FILE PHOTO: The logo of Thyssenkrupp is seen near elevators at its headquarters in Essen, Germany, November 21, 2019. REUTERS/Leon Kuegeler/File Photo

FRANKFURT (Reuters) - Germany's RAG Stiftung has joined a consortium led by private equity firms Advent and Cinven [CINV.UL] in a bid for Thyssenkrupp's TKAG.DE 15 billion euro ($17 billion) elevator division, two sources familiar with the matter said.

RAG, a public sector foundation and the controlling shareholder of German chemicals group Evonik EVKn.DE, was not immediately available for comment.

Thyssenkrupp, whose supervisory board was meeting on Wednesday to review offers for its elevator division, declined to comment.

A local player with less strict return targets than private equity, RAG’s involvement may improve the consortium’s chances with labour representatives, who control half of Thyssenkrupp’s supervisory board and need to approve any deal.

On Monday, RAG sold a 5.2% stake in Evonik worth 632.5 million euros ($705.9 million).

Reporting by Arno Schuetze, Tom Kaeckenhoff and Christoph Steitz; Editing by Michelle Martin and Susan Fenton