Full Breakdown
Kone to Acquire TK Elevator in €29.4 Billion Deal, Creating World's Largest Lift Maker
4/29/2026, 8:39:37 PM
Deal Summary and Financial Terms
Finnish lift maker Kone announced a cash-and-stock agreement to acquire German rival TK Elevator (TKE) for €29.4 billion, including debt. The package comprises €5 billion in cash, 270 million new Kone shares worth about €15.2 billion (33.8 % of the merged equity), and the assumption of €9.2 billion of TKE’s net debt. Kone shareholders controlling roughly 40 % of shares and 74.3 % of votes have approved the deal. Chairman Antti Herlin will buy €1 billion of the new stock, preserving a controlling voting stake above 50 %. Combined annual sales would be about €20.5 billion, 65 % of which comes from service and modernization.
Strategic Rationale and Expected Synergies
Kone says the merger will broaden its ability to deliver reliable, sustainable lift solutions and deepen its service and modernization business, the most profitable segment. TKE’s strong North-American footprint adds to Kone’s European and Asian base, creating a balanced global presence. The companies project annual synergies of €700 million from cost savings and additional profit.
Official Statements, Opposition, and Antitrust Outlook
Kone’s statement said it will work constructively with regulators to secure approval. CEO Philippe Delorme emphasized the deal’s role in meeting rising demand for dependable, sustainable services. TK Elevator chief Uday Yadav expressed a “deep respect” for Kone and optimism about joint offerings. Schindler, the second-largest lift maker, announced it will challenge the merger before antitrust authorities, and analysts expect close regulatory scrutiny given the market’s concentration.
Market Impact and Industry Implications
After completion, the combined Kone-TKE group would become the world’s largest lift manufacturer by market value, overtaking Otis and Schindler. The enlarged service portfolio and balanced geographic coverage could reshape competitive dynamics, influencing pricing, innovation cycles, and the balance of power in emerging markets. The transaction also marks the biggest Finnish-history takeover.
Conflicting Estimates and Information Gaps
Thyssenkrupp’s expected proceeds differ: Reuters calculations show €810 million cash plus up to €2.46 billion in shares, while Jefferies and JPMorgan estimate a total of up to €3.4 billion. Bloomberg reports the deal value at €29 billion, slightly below the €29.4 billion cited elsewhere.
Verbatim Quotes
- “This combination would meaningfully enhance our ability to meet customers' growing demand for reliable and sustainable solutions and services,” — Philippe Delorme, CEO, Kone
- “For over a century, both KONE and TKE have successfully developed their businesses, in tandem with an urbanizing world. By uniting, we are laying the foundation for an even more innovative company, well positioned for long-term success,” — Philippe Delorme, CEO, Kone
- “Together we will bring the very best of both companies to our customers, our people, and the cities we serve. The best of our story lies ahead,” — Uday Yadav, CEO, TK Elevator
- “The parties are prepared to work constructively with regulators to ensure full compliance,” — Kone (official statement)
Next Steps
The merger still requires antitrust clearance and a shareholder vote, both expected in early 2027. Kone aims to close the transaction in Q2 2027, pending regulator approval.
