Thyssenkrupp is a conglomerate and its elevator business is neglected and has lower profit margins of 10% compared to 15% by Otis. With German 10 year bond rates available at 1% Brookfield can make a bid and leveraged returns can be good if they can improve the business.
Elevator companies have long term service contracts and they make 50% of the money through services. Asia which has 50%+ of world population is the fastest growing market with India and China having major growth opportunities.
We should know the outcome of the sale process within a month or so.
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