Kone nears $34 billion deal for rival TK Elevator, Bloomberg News reports
Details and Implications of the Kone-TK Elevator Acquisition
Overview of the Potential Deal
April 28 (Reuters) - Lift maker Kone is nearing a cash-and-stock deal to buy German rival TK Elevator, valuing the company at about 29 billion euros ($33.97 billion), including debt, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The Finnish company is putting the final touches on a deal with TK Elevator's owners Advent and Cinven, with an announcement expected as early as Wednesday, the report said.
Market Impact and Industry Rankings
A merger between the two companies would create the world's largest lift maker, jumping ahead of current number one OTIS and second-largest Schindler. A deal of that size would also mark one of Europe's biggest takeovers this year and the highest-valued company takeover in Finnish history.
Reactions from Industry and Stakeholders
Reuters could not immediately verify the report. Kone and TK Elevator did not immediately respond to Reuters requests for comment. Advent and Cinven declined comment.
The head of Swiss lift maker Schindler said last month that it would challenge any merger deal between Kone and TK Elevator before antitrust authorities.
Background and Previous Bids
TK Elevator said last month that no decision had been taken yet on its future course, with an initial public offering (IPO) remaining one of the strategic options.
In 2020, Thyssenkrupp sold its elevator technology business - later renamed TK Elevator - for 17.2 billion euros to a consortium of bidders led by private equity firms Advent, Cinven and Germany's RAG foundation.
Kone wanted to buy TK Elevator six years ago, when it made a non-binding offer of 17 billion euros for the company, but withdrew the offer later due to antitrust risks.
Additional Information
($1 = 0.8538 euros)
(Reporting by Fabiola Arámburo in Mexico City; Editing by Tasim Zahid and Sahal Muhammed)
