Kone merger preparations include potential asset sales worth €4–5 billion as the Finnish elevator manufacturer seeks European Union approval for its combination with Germany’s TK Elevator. As of October 26, 2026, Kone is seeking preliminary bids for a European disposal package that excludes operations in Spain and Portugal, which the companies aim to retain.
Key Takeaways
- Potential divestitures remain subject to negotiations with EU regulators.
- The April agreement valued TK Elevator at €29.4 billion on an enterprise-value basis.
- Kone continues to target €700 million in annual savings; these are expected benefits, not achieved results.
Table of Contents
- Kone merger remedies remain under negotiation
- Agreement combines complementary regional businesses
- Savings target and completion remain conditional
- Conclusion
Kone merger remedies remain under negotiation
Kone is preparing to dispose of parts of TK Elevator’s European business to address regulatory concerns. It is soliciting preliminary bids for a smaller package of assets that leaves Spanish and Portuguese operations outside the proposed sale perimeter.
The final scope of disposals will depend on negotiations with EU regulators. Seeking bids does not mean buyers have been selected, asset sales have been agreed or regulatory approval has been secured.
The distinction matters for the eventual shape of the combined business: the operations retained after any required disposals will determine its European footprint. The proposed package is therefore a negotiating position rather than a settled outcome.
| Item | Details |
|---|---|
| Service and modernization | Approximately 65% of illustrative combined annual sales. |
| Adjusted operating profit | More than €2.7 billion in illustrative combined adjusted EBIT, excluding synergies. |
| Maintenance portfolio | Approximately 3.2 million units in the illustrative combined group. |
Agreement combines complementary regional businesses
The companies’ April 29 combination announcement set out a cash-and-share transaction between Kone and the Advent- and Cinven-led consortium that owns TK Elevator. It assigned TK Elevator an enterprise value of €29.4 billion, rather than describing that figure as an equity purchase price.
The proposed combination brings together Kone’s strength in Asia and TK Elevator’s presence in the United States. The companies illustrated the combined group’s scale using approximately €20.5 billion in annual sales for their last respective financial years; that figure is not a post-merger revenue result.
Service and modernization would be central to the group. The April announcement outlined the following illustrative operating profile, before completion of the transaction.
Savings target and completion remain conditional
Kone has reiterated its €700 million annual savings objective. The original announcement described this as estimated annual run-rate synergies, expected primarily from denser service networks, combined research and development, platform optimization, procurement efficiencies and administrative savings.
The April announcement placed completion no earlier than the second quarter of 2027, subject to regulatory approvals and Kone shareholder approval. Management’s confidence in obtaining clearance does not remove those conditions.
Conclusion
The next issue to watch in the Kone merger is the final divestiture package negotiated with EU regulators, particularly whether the companies can retain their Spanish and Portuguese operations. Neither the disposal perimeter nor regulatory clearance is settled.
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