KONE and TK Elevator Merger: Creating a $29.4 Billion Global Elevator Giant

In a landmark move set to reshape the global vertical transportation landscape, KONE Corporation has announced a strategic agreement to combine with TK Elevator, TKE. The proposed merger brings together two of the world’s leading elevator and escalator companies, creating a powerhouse with unprecedented scale, reach, and capability.

A New Global Leader Emerges

The combined entity is expected to generate approximately €20.5 billion in annual revenue, positioning it among the largest players in the industry. With nearly 65 percent of revenue coming from service and modernization, the new group will have a strong recurring business model backed by around 3.2 million units under maintenance globally.

This merger is strategically significant, aligning KONE’s strong presence in Asia with TKE’s established footprint in the Americas. The result is a well-balanced global organization capable of delivering integrated solutions across diverse markets.

Driving Innovation and Modernization

As cities grow denser and infrastructure ages, demand for modernization and digital solutions continues to rise. The combined capabilities of KONE and TKE are expected to accelerate advancements in predictive maintenance, IoT-enabled systems, and sustainable vertical mobility solutions.

Customers are likely to benefit from improved installation efficiency, expanded service networks, and enhanced lifecycle solutions. The increased scale also allows for stronger investment in research and development, further pushing the boundaries of innovation in the sector.

Synergies and Value Creation

KONE estimates annual cost synergies of approximately €700 million, expected to be realized within three years of the transaction’s completion. These efficiencies will primarily come from optimized service networks, procurement advantages, and enhanced research and development collaboration.

The transaction values TKE at approximately €29.4 billion, including debt, with a mix of €5 billion in cash and share consideration forming the deal structure.

Leadership and Integration

The combined group will be led by Philippe Delorme as CEO, ensuring continuity in leadership, while Antti Herlin will continue as Chairman. Representation from TKE stakeholders at the board level is expected, supporting a balanced integration approach.

With more than 100,000 employees across over 100 countries, the organization will offer expanded opportunities for talent development and global collaboration.

Timeline and Regulatory Path

The transaction is subject to shareholder approval and regulatory clearances across multiple jurisdictions. An Extraordinary General Meeting is expected in June 2026, with completion anticipated no earlier than the second quarter of 2027.

Industry Impact

This merger signals a decisive shift toward consolidation and scale in the elevator and escalator industry. By combining complementary strengths, KONE and TK Elevator aim to redefine service delivery, accelerate technological innovation, and strengthen their position in a rapidly evolving urban mobility ecosystem.

For the industry, this is more than a merger. It is a statement of direction, where size, service capability, and innovation will define the next phase of growth.

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Source: https://news.cision.com/kone-oyj/r/inside-information--kone-and-tke-to-combine--creating-a-world-class-company-in-the-elevator-and-esca,c4341886