Finnish elevator manufacturer Kone is preparing to launch the sale of most of TK Elevator’s European operations in an effort to satisfy regulatory authorities and secure antitrust approval for its proposed €29.4 billion ($33.3 billion) takeover of its German competitor, Reuters reported.
According to sources familiar with the matter cited by Reuters, the sales process for TK Elevator’s European division—covering elevators, escalators, and associated maintenance services—is slated to begin in the autumn, potentially as early as November.
Kone originally reached an agreement in April to acquire TK Elevator from an investor consortium led by private equity firms Advent International and Cinven. The landmark transaction represents one of the largest corporate takeovers in Europe in recent years and stands as the largest sell-side private equity deal on the continent since detailed tracking began in 1980.
In a corporate statement addressing the regulatory process, Kone confirmed that both companies have worked constructively with competition authorities since the transaction was announced, acknowledging that targeted remedy divestments would be necessary in certain geographic regions to clear antitrust hurdles. Despite the expected divestitures, Kone reiterated its commitment to generating €700 million in annual synergies from the combined operations.
TK Elevator generated roughly 27% of its total revenue in Europe last year, representing approximately €2.5 billion ($2.8 billion) in sales. Financial analysts at Citi estimate that the sale of these European assets could fetch around €2.1 billion ($2.4 billion) in gross proceeds.
The global elevator and escalator industry remains heavily consolidated among four dominant manufacturers: Otis, Schindler, Kone, and TK Elevator. Together, a combined Kone and TK Elevator entity would generate approximately 35% of its total revenue, or €7.2 billion ($8.1 billion), within the European market alone, creating a European champion capable of surpassing US-based rival Otis as the world’s largest lift manufacturer.
Antitrust scrutiny remains rigorous due to market concentration concerns. Kone Chief Financial Officer Ilkka Hara previously indicated to Reuters that regional asset sales were anticipated from the outset, noting that the transaction is not expected to complete before the second quarter of 2027. Meanwhile, Swiss competitor Schindler, which has openly criticized the deal, confirmed to Reuters that it views the mandated divestments as an opportunity to potentially acquire complementary assets.