Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Aïda Amer/Axios

In 2005, a top German politician famously referred to private equity as a "plague of locusts," long predating U.S. political hostility toward the industry. Now, private equity is about to learn if German sentiment has softened.

Driving the news: At least four PE groups are vying to buy the elevator business of German industrial conglomerate Thyssenkrupp, with expectations that the deal value could top $20 billion.

  • Also bidding is Kone, a Finnish elevator maker whose CEO publicly chided private equity's interest in the unit before teaming up with CVC Capital Partners.

Why it matters: Yes, elevators are boring. But they're also vital to urban development and the sort of reliable cash generator that makes buyout barons salivate.

  • Thyssenkrupp is the world's fourth-largest maker of elevators and escalators, but is selling the profitable unit in order to shore up an otherwise-troubled balance sheet.

The big picture: There have been some large buyouts of German targets since the "locusts" comment, such as Bain Capital and Cinven buying generic drugmaker Stada for around €4 billion in 2017, but nothing close to the size of what's being discussed with Thyssenkrupp.

The outcome of this deal could determine how private equity is viewed in Germany, and perhaps even elsewhere in Europe, for years to come. Both by regulators and by other potential targets.

  • If successfully purchased and managed (by someone other than Kone), then "locusts" will become little more than a fun footnote.
  • But, if financially engineered in a callous and/or calamitous way, private equity's future in the country will suffocate from its own swarm.

Go deeper: U.S. private equity firms raised record $300 billion in funding in 2019

Go deeper

Trump set to appear at Pennsylvania GOP hearing on voter fraud claims

President Trumpat the White House on Tuesday. Photo: Chip Somodevilla/Getty Images

President Trump is due to join his personal lawyer Rudy Giuliani in Gettysburg, Pennsylvania, Wednesday at a Republican-led state Senate Majority Policy Committee hearing to discuss alleged election irregularities.

Why it matters: This would be his first trip outside of the DMV since Election Day and comes shortly after GSA ascertained the results, formally signing off on a transition to President-elect Biden.

Scoop: Trump tells confidants he plans to pardon Michael Flynn

Photo: Alex Wroblewski/Getty Images

President Trump has told confidants he plans to pardon his former national security adviser Michael Flynn, who pleaded guilty in December 2017 to lying to the FBI about his Russian contacts, two sources with direct knowledge of the discussions tell Axios.

Behind the scenes: Sources with direct knowledge of the discussions said Flynn will be part of a series of pardons that Trump issues between now and when he leaves office.

Erica Pandey, author of @Work
11 hours ago - World

Remote work shakes up geopolitics

Illustration: Eniola Odetunde/Axios

The global adoption of remote work may leave the rising powers in the East behind.

The big picture: Despite India's and China's economic might, these countries have far fewer remote jobs than the U.S. or Europe. That's affecting the emerging economies' resilience amid the pandemic.