Finnish elevator maker Kone (KNEBV.HE) announced shareholders overwhelmingly approved its planned $34 billion acquisition of German rival TK Elevator (TKE). This landmark deal is set to create the world’s largest lift group. Announced in April, the transaction with Advent International, Cinven, and other TKE owners is one of Europe’s largest takeovers and the biggest sell-side private equity deal in Europe since 1980, according to LSEG data. Shareholder approval required a two-thirds majority, effectively secured as 74% of voting power had pre-committed.
Following the extraordinary general meeting, CEO Philippe Delorme outlined immediate next steps. “Now we are working on the next step which is filing in the different regulatory authorities, and bringing specific teams together to start building the integration plan,” Delorme stated. The cash-and-shares deal, valued at €29.4 billion ($34.2 billion) including debt, will propel Kone past its U.S. rival Otis, establishing a European champion and strengthening its Americas presence. Analysts anticipate stringent antitrust scrutiny, with Kone indicating a 12 to 18-month finalisation timeline.
Shareholders also authorised the issue of 270 million new class B shares. This forms part of Kone’s plan to pay €5 billion in cash and assume TKE’s €9.2 billion net interest-bearing debt. The issuance could grant Advent and Cinven a joint equity stake of roughly one-third and about 18% of voting power. Conditional on regulatory approval, Ranjan Sen of Advent and Bruno Schick of Cinven were also elected to Kone’s board. The ultimate value of the deal remains subject to Kone’s share price fluctuations.
