Salzgitter Said to Mull €1 Billion Sale of Bottling Unit KHS (2)

German steel and industrial conglomerate Salzgitter AG is considering a sale of its bottling machine unit KHS, which could be valued at as much as €1 billion ($1.1 billion), according to people familiar with the matter.

The company is in early stage deliberations on the potential divestment and hasn’t launched a formal review or sale process, the people said, asking not to be identified because the information is private. The asset could attract private equity firms, while the proceeds would help fund the transformation of Salzgitter’s steel business, the people said.

Salzgitter’s leadership are set to discuss whether to proceed ...