Kone to acquire TK Elevator in $34.4 billion landmark deal

09:03

By: Dakir Madiha

Kone to acquire TK Elevator in $34.4 billion landmark deal

Finland’s Kone has agreed to acquire German rival TK Elevator in a transaction valued at 29.4 billion euros, or $34.4 billion, marking one of the largest corporate takeovers in Europe in recent years. The deal combines cash and shares and is set to reshape the global elevator industry by creating the world’s largest manufacturer in the sector.

The combined entity would surpass major competitors including Otis in the United States and Switzerland’s Schindler. Kone said the merger is expected to generate annual synergies of around 700 million euros, reflecting cost efficiencies and expanded market reach. The agreement has already secured strong backing from Kone shareholders, with those representing more than 40 percent of shares and over 74 percent of voting rights committed to support the transaction.

Kone’s leadership framed the deal as a strategic response to long-term urbanization trends. The company emphasized that both firms have developed alongside growing global demand for vertical transportation systems in cities. The integration is expected to strengthen innovation capacity and position the combined group for sustained growth in urban infrastructure markets.

TK Elevator, which became independent after its separation from Thyssenkrupp in 2020, has been owned by private equity firms Advent and Cinven since its acquisition for about 17 billion euros. Its chief executive welcomed the merger, pointing to alignment between the two companies and potential benefits for customers and employees.

The announcement triggered a sharp market reaction, with Thyssenkrupp shares rising significantly following the news. However, the deal is likely to face regulatory scrutiny. Industry competitors have indicated readiness to challenge the transaction before antitrust authorities, raising the prospect of a detailed review process before completion.

The proposed merger underscores ongoing consolidation in industrial sectors tied to urban development. If approved, the deal would consolidate market power in a highly competitive industry while testing the limits of regulatory tolerance for large-scale mergers in Europe.