Finnish firm Kone plans to acquire German rival TK Elevator for €29.4 billion including debt. Both companies announced this in a joint statement on Wednesday. Owners Advent and Cinven are selling at the upper end of a targeted valuation between €25 billion and €29 billion.
The planned takeover in the elevator industry was announced in Frankfurt and Düsseldorf. Kone and TK Elevator (TKE) confirmed the deal in their joint statement. The price totals €29.4 billion including debt, marking one of Germany's largest sales by financial investors.
TK Elevator's owners, investors Advent and Cinven, achieve the upper end of their €25-29 billion valuation target. This is not Kone's first attempt to acquire the German rival. The merger may face resistance again.
The transaction highlights industry consolidation. Both companies see potential in the combination, though regulatory hurdles are anticipated.
