The United States Department of Justice has launched an in-depth antitrust review of KONE’s proposed acquisition of TK Elevator, bringing greater regulatory scrutiny to one of the largest transactions in the history of the elevator and escalator industry.
The review will assess whether the combination could reduce competition in the U.S. elevator market, particularly across installation, maintenance and modernisation services. According to a Bloomberg report published by ArcaMax, the DOJ requested additional information from the companies as part of its investigation.
The regulatory process remains at an early stage and could take a year or longer to complete. KONE said it has been cooperating with the Justice Department since announcing the transaction and continues to expect completion in the second quarter of 2027 at the earliest.
The company remains confident that the proposed combination will benefit customers and intends to continue working with regulators during the approval process.
A Deal That Could Reshape the Global Elevator Industry
KONE announced its agreement to combine with TK Elevator in April 2026. The transaction gives TK Elevator an enterprise value of approximately €29.4 billion, including interest-bearing net debt.
Under the proposed structure, KONE will pay €5 billion in cash and issue up to 270 million new Class B shares. The share component was valued at approximately €15.2 billion when the agreement was announced. KONE also expects to refinance most of TK Elevator’s interest-bearing net debt, estimated at around €9.2 billion.
If completed, the transaction would bring together two of the world’s largest elevator and escalator companies and could position the combined business ahead of Otis and Schindler in global scale.
According to KONE’s transaction announcement, the combined organisation would have annual sales of approximately €20.5 billion, more than 100,000 employees and operations across over 100 countries. It would also maintain approximately 3.2 million elevators and escalators worldwide.
Around 65% of the combined company’s sales would come from service and modernisation, providing it with a substantial position in the recurring maintenance segment.
U.S. Market at the Centre of the Review
The transaction would significantly strengthen KONE’s presence in the Americas, where TK Elevator already operates an extensive installation and service network.
KONE currently has a comparatively stronger position in Asia, which accounts for approximately 35% of its revenue. TK Elevator’s established business in the United States would therefore provide KONE with a more geographically balanced global operation.
This expansion is also likely to be a central consideration for U.S. competition authorities. Regulators will examine the overlap between the two companies and its potential effect on customers, service choices, pricing and competition across different segments of the elevator market.
KONE and TK Elevator are currently considered the third and fourth-largest companies in the global elevator industry. Their combination would create a substantially larger organisation in a market already led by a limited number of multinational manufacturers.
Regulatory Approvals Remain a Major Condition
The transaction requires approval from competition authorities in several jurisdictions. Analysts have viewed the regulatory process as one of the most significant risks surrounding the deal since it was announced.
KONE has already acknowledged that certain business operations could be divested if required to satisfy regulatory conditions. The final transaction consideration may also be adjusted depending on the extent and value of any assets sold as part of the approval process.
The companies expect the combination to generate annual pre-tax cost savings of approximately €700 million. These savings are expected to come from greater service network density, combined research and development capabilities, procurement efficiencies, platform optimisation and lower administrative costs.
The scale of the projected savings has also attracted attention from employee representatives, who have raised concerns about the possible impact of the integration on jobs and business locations.
KONE’s Longstanding Interest in TK Elevator
The latest agreement follows KONE’s earlier attempt to acquire the elevator division of thyssenkrupp in 2020. At the time, KONE joined forces with private equity firm CVC Capital Partners but ultimately lost the bidding process to a consortium led by Advent International and Cinven.
The elevator business subsequently became an independent company under the TK Elevator brand.
Six years later, KONE has returned with a substantially larger proposal to combine the two businesses. For Advent and Cinven, the transaction would represent one of the largest private equity exits in recent years.
Deal Timeline Remains Unchanged
Despite the expanded U.S. review, KONE has not changed its expected completion timeline. The company continues to target the second quarter of 2027 as the earliest possible closing date, subject to regulatory approvals and other transaction conditions.
Until those reviews are concluded, KONE and TK Elevator will continue operating as separate businesses.
The outcome of the U.S. investigation, along with decisions from other competition authorities, will determine whether the proposed combination moves forward as announced, proceeds with divestments or faces more substantial regulatory challenges.