Feb 28, 2020 - Economy & Business

Elevator deal is largest European buyout since financial crisis

Illustration: Aïda Amer/Axios

Thyssenkrupp of Germany agreed to sell its elevators unit for $18.7 billion to a consortium that includes Advent International, Cinven, ADIA and the RAG Foundation.

Why it matters: This is Europe's largest buyout since before the 2008-2009 financial crisis.

  • Marketplace: The winning price approximated a bid from Finnish strategic Kone, which was hampered by German labor concerns. It was higher than a rival private equity offer from Blackstone, Carlyle and CPPIB.

The bottom line: "Once an emblem of German industrial prowess, Thyssenkrupp is fighting for survival. The company has been bruised by a slowdown in Chinese and German manufacturing, rising pension costs and falling demand for European steel," Bloomberg writes.

Go deeper: Private equity "plague" descends on Germany's elevator industry

Go deeper

Private equity returns fell behind stocks over the past decade

Illustration: Aïda Amer/Axios

U.S. private equity returns fell just below S&P 500 returns for the 10-year period ending last June, according to a report released Monday morning by Bain & Company.

Why it matters: Private equity markets itself as beating public markets over long-term time horizons, and usually providing an illiquidity premium to boot. These new performance figures not only dent such claims, but provide fresh ammunition to critics of public pension investment in private equity funds.

Germany bans public gatherings of more than 2 people

German Chancellor Angela Merkel. Photo by John MacDougall/POOL/AFP via Getty Images

The German government is banning public gatherings of more than two people to help prevent the spread of the coronavirus outbreak, stopping just short of confining people to their homes Bloomberg reports.

Driving the news: Chancellor Angela Merkel is in quarantine after coming in contact with a doctor who tested positive for the virus.

Go deeperArrowUpdated Mar 22, 2020 - Health

Coronavirus is greatest challenge since World War II, Merkel warns

Angela Merkel prepares to address the nation. Photo: Steffen Kugler/Bundesregierung via Getty Images

In a national address with no precedent in her 14 years as chancellor, Angela Merkel said Germany now faces the gravest challenge since World War II.

What she’s saying: “Take it seriously. Since German unification, no, since the Second World War, there has been no challenge to our nation that has demanded such a degree of common and united action," Merkel said, per DW.

Go deeperArrowMar 18, 2020 - World