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Mergers & AcquisitionsMediumUpdated×2•Originally published 26 October 2026•Updated 26 October 2026•
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Kone Plans to Sell Most of TK Elevator’s European Business to Address Competition Concerns

Key Facts

1Kone plans to begin selling most of TK Elevator’s European business to address competition concerns, with the process potentially starting in November 2026, according to Reuters.
2Europe accounted for 27% of TK Elevator’s sales, or about 2.5 billion euros, in the year before the Reuters report published on 1 October 2026.
3Kone estimated illustrative annual sales of about 20.5 billion euros for the combined group, with services and modernization accounting for about 65%.
4Kone is due to publish its interim report for the period from 1 January to 30 September 2026 on 28 October at 08:30 Eastern European Time.

Kone plans to begin selling most of TK Elevator’s business in Europe to address competition concerns related to the acquisition, with the process potentially starting in November 2026, according to a Reuters report published on 1 October that cited people familiar with the matter. The business in question includes elevators, escalators and related services. The prospect puts the European business at the center of the approval process, after Kone acknowledged that divestments could be required in some regions. The company said, as quoted by Reuters: "We have always made clear that divestments as a remedy may be necessary in some regions to ensure regulatory approval." Kone has not announced a completed sale or a final scope of assets, so the plan reported by the sources remains a potential development in the regulatory reviews.

Europe accounts for a significant share of TK Elevator’s business, representing 27% of its sales, or about 2.5 billion euros, in the year before the Reuters report published on 1 October 2026. The revenue figure indicates that a broad divestment could reduce the geographic and commercial reach of the group Kone is seeking to create. Kone estimated annual illustrative sales of about 20.5 billion euros for the combined group, based on the latest fiscal year, when it announced the deal. It said services and modernization would account for about 65% of those sales, and adjusted operating profit would exceed 2.7 billion euros before synergies. These estimates relate to the combined group under the assumptions set out in the announcement, while a potential sale of European businesses could change the scale of the operations transferred to it.

Press estimates of the value of the European assets that could be put up for sale vary. Bloomberg reported that the assets could sell for about 5 billion euros or more, and cited Mitsubishi Electric and Fujitec as interested potential buyers. These are estimates and expressions of interest reported by news outlets citing people familiar with the matter, not a price announced by Kone or a confirmed offer from either company. The disparity between the value of the businesses and their annual sales reflects how the scope of the assets and the nature of the transaction will determine the potential sale value. Available information contains no final details on which assets would be included or the identity of a selected buyer.

A potential divestment could affect the business mix underpinning these estimates, particularly as services and modernization account for about 65% of the group’s illustrative annual sales, according to Kone. Kone expects to complete the deal in the earliest case during the second quarter of 2027, subject to regulatory approvals. That timing remains conditional, and the company has not made a final determination on whether it will proceed with the European sale or its scale.

Authorities continue to review the transaction in multiple markets. In Singapore, the Competition and Consumer Commission accepted the deal application on 29 September 2026, then opened it to public comment from 7 October until 5 p.m. on 20 October. This adds to other regulatory reviews; the UK Competition and Markets Authority said in September that it had begun an initial information-gathering phase and had not yet opened a formal Phase 1 investigation. These steps come as Kone and TK Elevator work with regulators, according to Kone’s statement quoted by Reuters. Kone is due to publish its interim report for the period from 1 January to 30 September 2026 on 28 October 2026 at 08:30 Eastern European Time. Kone shares fell 5% on the day the deal was announced in April, while Thyssenkrupp shares rose 8.7%, Reuters reported; Thyssenkrupp then held a 16.2% stake in TK Elevator.

The deal brings back into focus a previous attempt to buy TK Elevator: Kone made a non-binding offer valued at 17 billion euros about six years ago, then abandoned it over antitrust risks, according to Reuters. The current transaction brings together two major companies in the elevator and escalator industry, making its competitive impact a central issue in regulatory decisions. Kone’s extraordinary general meeting approved the resolutions related to the deal on 3 June 2026, while TK Elevator said regulatory filings had been submitted or were being prepared in key jurisdictions. The sale of most of the European business remains a potential remedy for addressing concerns, according to press reports, while no official announcement of a completed sale has been made. Near-term attention is turning to Kone’s interim report due on 28 October and developments in the deal review, as well as the expected completion timeline of the second quarter of 2027 at the earliest.