Kone plans to sell most of TK Elevator’s European business this fall to address antitrust concerns. The sales process should start in November, helping the Finnish firm secure regulatory approval for its €29.4 billion purchase. Kone said, "We have always been clear that remedy divestments may be necessary to secure clearance."
Kone intends to initiate the sale of most of TK Elevator's European operations this fall. This decision is aimed at addressing regulatory concerns related to Kone's acquisition deal. The sales process is expected to commence in November, according to sources familiar with the situation. Kone previously indicated that divestments could be necessary for regulatory approval of the acquisition. Both Advent and Cinven have declined to comment on these developments.
Munich: Kone is planning to launch the sale of most of TK Elevator's European business in a bid to tackle antitrust concerns over the Finnish firm's planned €29.4 billion ($33.3 billion) purchase of its German rival, two people familiar with the matter said.
A sales process for TK Elevator's (TKE) European business - which comprises elevators, escalators and related services - is expected to be launched in the fall, the people said, with one of the sources saying it could start in November.
Kone in April agreed to buy TKE from an investor group led by Advent International and Cinven in a deal that would create the world's largest lift maker.
"Since announcing the transaction, KONE and TKE have been working closely and constructively with regulators," Kone said in a statement. "We have always been clear that remedy divestments may be necessary in some geographies to secure regulatory clearance."