Kone to Acquire TK Elevator in €29.4 billion Deal, Forming World's Largest Lift Maker

Finnish elevator maker Kone agreed to buy German rival TK Elevator for €29.4 billion ($34.4 billion). The deal includes €5 billion cash, 270 million new shares (~€15.2 billion) and assumption of €9.2 billion net debt. The combined firm will have >100,000 employees, sales >€20 billion, and will surpass Otis and Schindler as the largest lift maker.

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The deal follows a slowdown in China’s market, prompting lift makers to seek growth elsewhere. Kone aims to deepen its Americas presence and to form a champion. A €17 billion offer six years ago was withdrawn over antitrust and payment disputes with Thyssenkrupp.

Reuters

Kone will pay €5 billion cash, issue 270 million new shares (~€15.2 billion) and assume €9.2 billion net debt. It projects €700 million synergies from maintenance and modernization, while another analysis estimates up to $1.2 billion (€1.1 billion) in cost savings by 2028, indicating a forecast gap.

Reuters

Analysts estimate the combined firm will hold about 35 % of the vertical-transport market, overtaking Otis’s $29 billion valuation. The portfolio expands Kone’s service contracts and pits the group against Chinese rivals Canny and Guangri, gaining market share in developing regions.

Kone to Acquire TK Elevator in $34.4 Billion Consolidation

Kone CEO Philippe Delorme said the merger will lay the foundation for an innovative company; TK Elevator CEO Uday Yadav said it will bring the best of both firms to customers. Finnish Prime Minister Petteri Orpo called for growing companies in the top tier. European Commission has not yet been notified, and Schindler will challenge the deal.

CNBC

Schindler plans to challenge the merger over market concentration. Analysts warn the Kone equity case could be subsumed by the TKE deal, raising integration risk. Regulators may demand divestitures in North America and Europe, extending approval to 12–18 months.

Reuters

Synergy estimates differ: Kone cites €700 million annually, while another analysis projects up to $1.2 billion by 2028. The exact break-up fee and the schedule for formal European Commission notification remain undisclosed.

Reuters

• “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

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• “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

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• “We need more growing companies in the global top tier,” — Petteri Orpo, Prime Minister of Finland

Reuters

• “In terms of synergies as a percentage of revenue of the acquired company, this is a pretty impressive deal,” — Panu Laitinmaki, Equity Analyst, Danske Bank

Reuters

European Commission and U.S. regulators are expected to review the deal for up to 18 months, possibly requiring Kone to divest assets. Completion will reshape global maintenance contracts and consolidate data-driven predictive-maintenance services under one leader.

Kone to Acquire TK Elevator in $34.4 Billion Consolidation