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Kone Divests European Business to Aid Rival Takeover
1 Oct
Summary
- Kone plans to sell TK Elevator's European operations.
- Antitrust concerns drive the divestment strategy.
- The sale aims to secure regulatory approval for the acquisition.
Finnish firm Kone is reportedly planning the sale of most of TK Elevator's European business. This strategic divestment is intended to mitigate antitrust concerns arising from Kone's proposed €29.4 billion acquisition of its German competitor, TK Elevator (TKE). The deal, agreed upon in April, aims to establish Kone as the global leader in the lift industry.
A sales process for TKE's European operations, which include elevators, escalators, and associated services, is anticipated to commence in the fall. One source indicated that this process could begin as early as November. Kone acknowledged that divestments in certain regions might be necessary to obtain regulatory approval for the transaction.
Kone has been actively collaborating with regulatory bodies since announcing the TKE acquisition. The company stated its commitment to working constructively to ensure the deal's clearance. Representatives from Advent, Cinven, and TKE have declined to comment on the impending divestment plans.
