Japanese elevator manufacturers, including Mitsubishi Electric, are reportedly evaluating a potential acquisition of parts of TK Elevator’s European business as KONE prepares possible divestments to address competition concerns surrounding its planned combination with TKE.
According to reports citing people familiar with the matter, Mitsubishi Electric is among the companies expected to examine the European assets that could be placed on the market. Fujitec, which is owned by Swedish investment firm EQT, has also been identified as a possible bidder, while private equity firms may participate in the process as well. No formal bids have been publicly confirmed at this stage.
The potential sale is linked to KONE’s proposed acquisition of TK Elevator. In April 2026, KONE and a consortium led by Advent and Cinven announced an agreement to combine the two elevator groups in a cash-and-share transaction implying an enterprise value of €29.4 billion for TKE. KONE shareholders subsequently approved resolutions connected with the transaction in June.
European assets could become a major elevator industry transaction
Recent reports indicate that the European operations under consideration could be valued at approximately €5 billion or more, with the businesses reportedly generating earnings exceeding €400 million.
The exact businesses included in any divestment package have not yet been finalised and are expected to depend on discussions with European competition authorities.
Reuters previously reported that KONE was preparing to sell a substantial portion of TKE’s European operations to address potential antitrust concerns. TKE’s European division accounted for approximately €2.5 billion, or 27%, of the company’s 2025 revenue, according to the report.
The regulatory review is particularly significant because a combination of KONE and TK Elevator would further consolidate a global elevator and escalator market already dominated by a relatively small number of multinational manufacturers.
Japanese manufacturers could strengthen their European presence
A potential acquisition would give Japanese elevator companies an opportunity to significantly expand their footprint in Europe.
Mitsubishi Electric already operates internationally across elevator and escalator markets, while Fujitec has a presence across several global regions. Acquiring an established European portfolio from TKE could provide access to existing installations, maintenance contracts, customer relationships and local operations.
Reports suggest Japanese companies have been increasingly examining overseas acquisitions, making the prospective TKE asset sale potentially attractive to strategic buyers seeking greater scale outside their domestic market.
KONE continues regulatory process
KONE has previously acknowledged that divestments in certain markets could be necessary to obtain regulatory approval for the TKE transaction.
The proposed combination remains subject to regulatory clearances and other closing conditions. TK Elevator said in its latest financial update that regulatory filings had been submitted or were underway in key jurisdictions, with completion of the transaction expected no earlier than the second quarter of 2027.
KONE has also maintained its expectation that the combination could eventually generate approximately €700 million in annual synergies.
Neither Mitsubishi Electric nor Fujitec has publicly confirmed plans to submit an offer for the assets, while TK Elevator and the private equity groups involved have also declined to comment on the reported bidder interest.
A potentially significant reshaping of Europe’s elevator market
If the divestment proceeds, it could become one of the more significant portfolio transactions in the European elevator industry.
Beyond the value of the assets themselves, the eventual buyer could gain a considerably larger installed base and service network in Europe, potentially changing competitive dynamics among the region’s major elevator manufacturers.
For now, the sale process remains at an early stage. The final composition of the assets, prospective bidders and transaction value will depend heavily on the outcome of KONE’s discussions with competition regulators.
Source: KONE, TK Elevator, Reuters and reports citing Bloomberg