Siemens Healthineers is in early discussions with leading private equity firms, including Blackstone, CVC Capital Partners, and KKR, over a possible sale of its diagnostics business in a deal that could exceed €6bn ($7bn), according to sources familiar with the matter cited by Bloomberg.

People familiar with the matter said the deliberations remain at a preliminary stage, with no certainty they will lead to a transaction. Montagu has also previously expressed interest in the division. Siemens Healthineers could still opt to retain the business.

The diagnostics arm, which performs in-vitro testing of blood and tissue samples to identify diseases and infections, has been under strategic review for more than two years. The company’s imaging and Varian cancer-care divisions would not be part of any sale.

Shares in Siemens Healthineers rose as much as 3.6% on Wednesday after Bloomberg reported the talks, marking their biggest intraday gain since May. The company’s market value stands at about €54bn, though shares are down around 6% this year. Its largest shareholder, Siemens AG, holds a 71% stake.

The potential sale reflects private equity’s growing interest in healthcare assets with recurring revenues and strong global demand. Siemens Healthineers is expected to provide further strategic updates at its capital markets day on November 17, while Siemens AG plans to update investors in December after reducing its stake earlier this year.

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