Finnish elevator manufacturer KONE announced on Wednesday that it will acquire its German competitor TK Elevator (TKE) in a landmark share-and-cash transaction valued at €29.4 billion, marking what Finnish media have described as the largest corporate takeover in the country’s history.
The merger will create a global industry leader nearly twice the size of KONE’s current operations. The combined group will employ more than 100,000 people across over 100 countries, with annual revenues projected at approximately €20.5 billion.
TKE is currently owned by a consortium of private equity investors including Advent and Cinven. Under the terms of the agreement, the consortium will receive €5 billion in cash along with 270 million shares in the newly formed KONE, valued at €15.2 billion. Following the transaction, the group of investors will hold a 33.8% stake in the merged company.
The headquarters of the new entity will remain in Finland, with KONE’s current chief executive, Philippe Delorme, set to lead the combined organisation.
In a joint statement, the companies described the deal as a transformative step for the global elevator and escalator industry. “This industry-revitalising transaction brings together two exceptional global businesses with highly complementary geographic footprints and innovation platforms,” the statement said.
The merger significantly expands KONE’s global reach. While KONE has a strong presence in Asia, TKE brings established operations across the Americas, strengthening the combined company’s position in high-margin service and maintenance contracts. The firms said the integration would create a more balanced global footprint across all major regions.
Market analysts estimate that the combined business will generate annual cost savings and additional profits of around €700 million through operational synergies. The new group is expected to maintain an investment-grade credit rating while delivering strong cash flow generation.
The deal remains subject to regulatory approvals and shareholder consent, with completion expected in 2027.
The acquisition has been widely interpreted as a major consolidation move in a sector increasingly shaped by long-term service contracts, urbanisation trends, and demand for smart infrastructure solutions. By combining manufacturing strength with global service networks, the merged company aims to position itself as a dominant force in vertical transportation systems worldwide.
If completed, the transaction will mark a defining moment not only for KONE but for Finland’s corporate landscape, signalling the country’s growing role in large-scale international industrial consolidation.
