KKR nears deal for Daimler unit

While last-minute hitches could delay a deal, an announcement is expected as early as Friday. As part of the accord, KKR is expected to pay the €1.2bn in cash for MTU Aero Engines GmbH, which makes parts and technology for aircraft engines, and assume about €250m in liabilities, including pension costs, according to people familiar with the situation.

A spokesman for KKR declined to comment on the deal. A spokesman for DaimlerChrysler, which is being advised by JP Morgan Chase, could not be reached for comment.