Thyssenkrupp AG is weighing the sale of a 30% stake in its Rothe Erde bearings business, a move that could value the unit at approximately €1.5 billion ($1.8 billion). People familiar with the matter disclosed the potential deal, which would mark a significant step in the German industrial conglomerate's ongoing portfolio restructuring.

The consideration comes as Thyssenkrupp seeks to simplify its complex structure and reduce debt. Selling a minority stake in the bearings unit could provide a substantial cash injection, aiding its pivot toward more profitable areas like green steel and submarine technology. This aligns with a broader trend among European industrials to focus on core strengths.

A successful transaction would signal strong investor appetite for specialized industrial assets, even amid economic uncertainty. The deal's outcome will be closely watched by competitors and private equity firms. It also raises questions about Thyssenkrupp's future strategic moves, including potential further divestitures.