A potential sale of Toshiba Corporation (TSE:6502)'s elevator business has attracted preliminary interest from industry players including Chinese conglomerate Midea Group Co., Ltd. (SZSE:000333) and U.S. giant Otis Worldwide Corporation (NYSE:OTIS), people familiar with the matter said. KONE Oyj (HLSE:KNEBV), which owns 19.9% of Toshiba's elevator unit, is interested in acquiring the rest of the operation, the people said. thyssenkrupp Elevator AG (TK Elevator GmbH), the German company owned by buyout firms Advent International Corporation and Cinven Limited, would also be a suitor if Toshiba goes ahead with a sale, according to the people, who asked not to be identified because the matter is private.

Toshiba's elevator business could fetch about $4 billion in a sale, the people said. Considerations are at an early stage and Toshiba hasn't kicked off any formal sale process, they said. The Japanese conglomerate and Kone have been collaborating in areas including the supply and procurement of parts since 1998.

The partnership could give the Finnish company an edge over other potential rivals, the people said. Toshiba aims to reach a final agreement by March 2023, its representative said in response to Bloomberg queries. A spokesperson for Kone said it follows the business and developments around it closely, without commenting further.

A spokesperson for Otis said the company explores potential opportunities when appropriate and is aware of Toshiba's announcement, declining to comment on specific transactions. A representative for Midea didn't immediately respond to requests for comment, while Advent and Cinven declined to comment.