There is speculation about a big deal again – “A double barrel for investors”

Elevator company The machine and formerly an industrial giant to Thyssenkrupp to have heard TK Elevator the merger would be a double-edged sword for the investor, estimates the news manager Lauri Sihvonen Directly from Kauppalehti In the Talousamau program on Monday.

The merger of Kone and TK Elevator has been speculated again recently. News agency Bloomberg reports a couple of weeks ago, citing anonymous sources, that Kone was making an offer for TK Elevator, and that TK Elevator’s main owners would like 25 billion euros for the company.

Kone has been pursuing TK Elevator for a long time. The company wanted to buy the business from Thyssenkrupp already in 2020, but the German industrial giant sold the business to a venture capitalist Advent Internationalille and Cinvenille with 17.2 billion euros.

Sihvonen stated in Talousaamu that Kone has long been a highly regarded quality company where good strategic choices have been made.

“We used to be strong in China when there was growth there, and now we have successfully organized a few activities again when it has been difficult in China,” said Sihvonen.

In addition, he described Konetta as a predictable company.

“It’s been easy to trust that it always goes as promised.”

If the rumored merger with TK Elevator were to materialize, according to Sihvonen, the management’s focus would be on integration for many years. In addition, there could be divestments of some operations due to overlaps or because the competition authority would not approve them.

“Then there would be many years of fiddling with what the new Kone-TK would be. This is a double-edged sword for investors,” Sihvonen reflected.

“On the other hand, in the long term, it could be great that the world’s largest elevator giant would be born, which would be this Finnish, but then again, as an investment case, it could be that there would be many somewhat difficult years in between,” said Sihvonen.

Read a more extensive article about Kone here: The machine wants TK Elevator, could the rate rise to over 70 euros again? – Analyst: “Yes, there is potential”

Monday’s Talousamu was hosted by a producer Mari Haavisto.

The broadcast also talked about the rumored giant deals in Kone and the profit differences between forest companies. You can watch Monday’s Economic Morning in its entirety below.