FRANKFURT AM MAIN, Germany — Shares in German industrial conglomerate Thyssenkrupp rose at the open in Frankfurt Friday before giving way to coronavirus fears, after sealing a mammoth deal to sell its highly profitable elevators unit.

Thyssenkrupp added as much as four percent before falling back, losing 3.4 percent to trade at 8.85 euros around 09:15 (0815 GMT) as the broader market succumbed again to fears over the virus outbreak.

The broader MDAX index of medium-sized companies — to which it was demoted last year — fell more than 2.5 percent.

The Essen-based steel-to-submarines group announced late Thursday that it would sell its elevators division for 17.2 billion euros to a consortium of investors led by US-based Advent and Britain's Cinven.

"With the sale of Elevator, Thyssenkrupp can pick up speed again," chief executive Martina Merz said in a statement.

"We will reduce the company's debt as far as is necessary and at the same time invest as much as is reasonable in its further development."

Thyssenkrupp is in the throes of a major restructuring that will see it slash at least 6,000 jobs, including 2,000 in its struggling historic steel business.

The new owners signed "far-reaching site and employee guarantees" for the lifts unit, Thyssenkrupp said.

Powerful German union IG Metall said in a separate statement jobs and sites would be protected for "seven years and one month".

With a loss of 304 million euros in its 2018-19 financial year, Thyssenkrupp's woes deepened when European competition authorities blocked its steel unit's merger with India's Tata Steel. — AFP