ThyssenKrupp scraps railway unit sale after bids disappoint

|About: ThyssenKrupp AG ADR (TYEKY)|By:, SA News Editor

ThyssenKrupp (TYEKY, TYEKF) says it will scrap the sale of its railway and construction business after failing to attract an acceptable bid; instead, the German steelmaker now plans to discontinue its railway equipment activities, selling some of its parts and closing some sites.

However, the company says the profitable construction equipment operations will remain within the materials services division and undergo a restructuring.

The planned disposal of the businesses, which have combined annual sales of ~€400M ($524M), was prompted by limited growth prospects in the German market and cost pressures.