Finnish elevator company Kone plans to sell a significant part TK Elevator of the European operations in order to mitigate the competition authorities’ concerns regarding Kone’s intention to buy its competitor, says Reuters citing their sources.
In April, Kone agreed to buy TKE for 29.4 billion euros. The deal would create the world’s largest elevator manufacturer.
The sale of TKE’s European operations is estimated to start in the fall, the news agency’s sources say. According to Reuters, Citi analysts estimate the purchase price to be around 2.1 billion euros.
According to Kone, preparations have been made for the sale of certain functions in order to obtain official approvals. The company is still aiming for annual synergy benefits of 700 million euros with the deal.
The global elevator market is strongly concentrated in four large companies, which are Kone, TKE, Otis and Schindler. The giant deal is expected to be completed in the second quarter of 2027 at the earliest.