DUESSELDORF (Reuters) -Germany’s Rheinmetall is holding talks with several potential bidders for its Power Systems auto supply business, the company said on Wednesday after newspaper Handelsblatt reported it was speaking to financial investor One Equity Partners (OEP).
“Rheinmetall has for some time received purchase enquiries from potential interested parties and is in discussions in a competitive process with several bidders,” the company said.
The defence contractor wants to put the civilian sector in good hands and is examining all possibilities with the greatest care, it added.
Citing financial and sector sources, Handelsblatt reported that OEP was one of the potential parties. Rheinmetall declined to comment on that specifically.
An OEP representative said the company had no comment.
Rheinmetall CEO Armin Papperger reiterated in May that the Power Systems division, which serves civilian industries including automotive and energy, was no longer a core part of the group.
The company wants to focus on its booming military business, Papperger has said.
Power Systems was the only division of the company to report a fall in business in the first quarter. Sales were down nearly 7% at 505 million euros ($585.55 million) and operating profit plunged by 70.4 percent to 9 million euros.
($1 = 0.8624 euros)
(Reporting by Matthias InverardiWriting by Madeline ChambersEditing by Miranda Murray and David Goodman)
