Kone: the story explained

Finland’s Kone has agreed to buy German rival TK Elevator in a landmark deal valued at 29.4 billion euros ($34.4 billion). Kone has emerged this Friday as one of the stories drawing attention in Estonia.

Key facts

• Finland’s Kone has agreed to buy German rival TK Elevator in a landmark deal valued at 29.4 billion euros ($34.4 billion).
• Finland's Kone has agreed to buy German rival TK Elevator in a deal valued at 29.4 billion euros ($34.4 billion), marking one of Europe's biggest takeover agreements in recent years.
• Kone said the deal would result in estimated synergies of 700 million euros on an annual run-rate basis.
• Kone shareholders holding just over 40% of all outstanding shares and approximately 74.3% of total votes have agreed to support the deal, the company said.
• The combination would create the world’s largest elevator maker and marks one of Europe's biggest takeovers in recent years.

What we know

Going deeper, Finland's Kone has agreed to buy German rival TK Elevator in a deal valued at 29.4 billion euros ($34.4 billion), marking one of Europe's biggest takeover agreements in recent years.

On the substance, Kone said the deal would result in estimated synergies of 700 million euros on an annual run-rate basis.

Beyond the headlines, Kone shareholders holding just over 40% of all outstanding shares and approximately 74.3% of total votes have agreed to support the deal, the company said.

More precisely, the combination would create the world’s largest elevator maker and marks one of Europe's biggest takeovers in recent years.

It is worth noting that For over a century, both KONE and TKE have successfully developed their businesses, in tandem with an urbanizing world.

By the numbers

At this stage, Shares of German steel company Thyssenkrupp rose 8% on the news, paring gains having climbed as much as 14%.

On a related note, TK Elevator became an independent company after separating from Thyssenkrupp in 2020.

Going deeper, Private equity firms Advent and Cinven bought TK Elevator for around 17 billion euros at the time.

The wider context

On a related note, By uniting, we are laying the foundation for an even more innovative company, well positioned for long-term success," Kone CEO Philippe Delorme said in a statement.

Going deeper, the cash and share agreement, which had been rumored in recent days, would create the world's largest elevator maker, overtaking rivals such as U.S.-based Otis and Switzerland's Schindler.

On the substance, TK Elevator CEO Uday Yadav said the two companies share a "deep respect" as he welcomed the announcement.

Beyond the headlines, Together we will bring the very best of both companies to our customers, our people, and the cities we serve.

More precisely, the proposed merger is expected to face industry scrutiny, with Schindler telling Reuters late last month that it was prepared to challenge any such deal before antitrust authorities.

The bottom line

• The combination would create the world’s largest elevator maker and marks one of Europe's biggest takeovers in recent years.
• The cash and share agreement, which had been rumored in recent days, would create the world's largest elevator maker, overtaking rivals such as U.S.-based Otis and Switzerland's Schindler.
• The proposed merger is expected to face industry scrutiny, with Schindler telling Reuters late last month that it was prepared to challenge any such deal before antitrust authorities.
• Searches spiking right now: Sündimas on Soome äriajaloo suurim tehing: Kone ostab 29 miljardi euro eest konkurendi, Soome liftitootja Kone ostab ajaloolise tehinguga konkurendi TK Elevatori, Umbusaldajate nimel kõne pidanud Erki Nool: EOK rahaasjad on segased ja spordi mainet madaldatakse arusaamatu tegevusega, Soome ajaloo suurim firmaost: liftitootja Kone ostab konkurendi.