Exclusive-Carlyle drops out of bidding process for Thyssenkrupp marine unit

By Christoph Steitz

FRANKFURT (Reuters) -Carlyle has dropped out of an ongoing bidding process for the warship division of stricken conglomerate Thyssenkrupp (ETR:TKAG ), the German company said on Tuesday.

"We can confirm that the investment company Carlyle Group (NASDAQ:CG ) has informed us that it is withdrawing from the bidding process for the investment in Thyssenkrupp's marine division," Thyssenkrupp said in a response to emailed questions.

The company did not say why Carlyle had exited the process, adding it was now focusing on a spin-off of the division, which builds submarines and frigates.

Carlyle declined to comment.

News about Carlyle dropping out of the sales process for Thyssenkrupp Marine Systems (TKMS) is a major blow to the group's ongoing restructuring, which also includes plans for a 50:50 steel joint venture with Czech billionaire Daniel Kretinsky.

Thyssenkrupp shares fell as much as 3.7% on the news.



Sources told Reuters in June that Carlyle and state-lender KfW were in talks to jointly acquire a majority in TKMS.

Thyssenkrupp said it remained in talks with the government about a possible participation.

Source: Investing.com