Finnish lift maker Kone to acquire German rival TK Elevator in $34-billion deal

HELSINKI: Finland's Kone has agreed to acquire Germany's TK Elevator (TKE) in a deal valued at 29.4 billion euros ($34.4 billion), creating the world's largest lift maker.

The takeover would propel Kone ahead of US rival Otis, strengthen its presence in the Americas-where TKE is strong-and position it as a European industry leader amid slowing demand in China.

"We need more growing companies in the global top tier," Finnish Prime Minister Petteri Orpo said.


The deal, struck with TKE's private equity owners Advent International and Cinven along with other investors, is among Europe's largest recent takeovers and the biggest sell-side private equity deal in the region on record, according to LSEG data. The combined group will have more than 100,000 employees and annual revenues exceeding 20 billion euros.

The merger will expand Kone's scale in maintenance and modernisation-its most profitable segments-while significantly boosting its footprint in North America, which accounts for about a third of TKE's sales. Kone is currently strongest in Europe and Asia. The companies expect annual cost savings of around 700 million euros.

Shares in Kone fell 5% to their lowest since August, while Thyssenkrupp-which holds a 16.2% stake in TKE-rose 8.7%.

Analysts warned the deal could face significant regulatory scrutiny in a highly concentrated market. The European Commission has yet to be formally notified, and the approval process could take 12 to 18 months.

Swiss rival Schindler has already said it would challenge the merger.

If completed, the combined company would surpass Otis in market value, though conglomerates like Mitsubishi Electric and Hitachi remain larger overall due to diversified operations.