(Bloomberg) -- Private equity firm Carlyle Group Inc. has dropped out of a process to acquire Thyssenkrupp AG’s naval shipbuilding unit in a blow to the German firm’s restructuring push.
Carlyle is no longer bidding for the Marine Systems business, a Thyssenkrupp spokesman said Tuesday. Both companies were discussing a potential majority stake sale valuing the division at about €1.5 billion ($1.62 billion), Bloomberg reported in March.
Marine Systems makes submarines, surface vessels and naval electronics. Securing an investment from Carlyle would have been a welcome bright spot for Thyssenkrupp Chief Executive Officer Miguel Ángel López Borrego, who’s pledged to revive the struggling industrial German conglomerate.
The manufacturer has said it’s working on making the unit more independent via a sale, spinoff or initial public offering. Carlyle’s withdrawal is a setback to those plans as no alternative bidders have come forward.
Thyssenkrupp shares declined as much as 3.7% in Frankfurt. The stock is down around 48% this year.
“We remain convinced that the naval business can best exploit the industry’s global growth opportunities in an independent position,” the company said in an emailed statement. “Independence offers a good starting position for possible national and European consolidation.”
Carlyle declined to comment. Reuters reported the move earlier Tuesday.
(Updates with Thyssenkrupp comment in sixth paragraph.)
©2024 Bloomberg L.P.