Finnish lift maker Kone on Wednesday announced the acquisition of its German rival TK Elevator (TKE) in a major share-and-cash transaction valuing TKE at 29.4 billion euros ($34.4 billion), creating a global industry giant.
The combined company will be nearly twice the size of Kone’s current operations, employing more than 100,000 people across over 100 countries, with annual revenues of approximately 20.5 billion euros, according to a joint statement from the two firms, News.Az reports, citing AFP.
TK Elevator was spun off from Germany’s Thyssenkrupp in 2020 and is currently owned by a consortium that includes private equity firms Advent and Cinven.
Industry analysts note that the elevator market is being driven by global urbanization and the expansion of the service sector, as well as rising demand in aging societies where mobility needs are increasing.
The deal is considered one of the largest European acquisitions involving private equity groups, according to Bloomberg, and is reported by Finnish media to be the biggest corporate takeover in Finland’s history.
Under the agreement, the new group will be headquartered in Finland and led by Kone’s current French CEO Philippe Delorme. Kone board chairman Antti Herlin, recognized by Forbes as Finland’s richest person, will remain chairman of the merged entity. The Herlin family has controlled Kone for around a century.
The companies described the transaction as an “industry-revitalising” merger that combines two global businesses with complementary strengths. Kone’s strong presence in Asia will be complemented by TK Elevator’s footprint in the Americas, while TKE also expands the group’s reach into new markets. TK Elevator currently generates about 45% of its revenue in the United States.
As part of the deal, the TKE consortium will receive 5 billion euros in cash and 270 million shares in the new company, valued at 15.2 billion euros, giving it a 33.8% stake in the combined group.
The companies expect annual cost synergies of around 700 million euros. The transaction is expected to be completed no earlier than the second quarter of 2027.
CEO Philippe Delorme said the merger will “accelerate our strategic shift to service and modernisation, reinforcing our resilience.” After the deal, services and modernization are expected to account for about 65% of total revenue.
Markets reacted positively, with Kone shares rising 2.4% to 57.66 euros in Helsinki trading.
Analyst Aapeli Pursimo of Finnish advisory firm Inderes said the deal has “very solid industrial logic,” but noted potential regulatory and integration risks. He also said competition authorities may require divestments in Europe due to overlapping operations, and rivals such as Schindler could raise concerns.
Pursimo added that continuity in leadership, with Delorme and CFO Ilkka Hara remaining in place, could support a smoother integration process.
Philippe Delorme, who became CEO of Kone in January 2024, previously spent more than 25 years at Schneider Electric.
In 2025, Kone reported sales of 11.2 billion euros, compared with 9.2 billion euros for TK Elevator.
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