Bloomberg (September 18, 2025) – Finnish elevator company KONE is exploring a potential bid for rival TK Elevator, according to sources familiar with the matter. Meanwhile, TK Elevator’s private equity owners, Advent International and Cinven, are weighing an initial public offering (IPO).
*IPO (Initial Public Offering) refers to the process of a private corporation offering shares to the public in a new stock issuance for the first time. The purpose is to raise capital from investors to expand business operations and develop on a larger scale.
Sources said KONE has held discussions with advisers and is assessing capital-raising options for a potential bid, which could target all or part of the unit formerly belonging to Thyssenkrupp AG. TK Elevator was valued at over €23 billion ($27 billion)—approximately VND 713,000 trillion—including debt, in a stake sale announced in February. If realized, this would be one of the largest transactions of the year.
KONE shares rose as much as 5% in Helsinki trading on September 18, 2025, reaching their highest level since February 2022. As of 11:37 a.m. local time, the stock was up 3.7%, pushing the company’s market capitalization to approximately €30.7 billion.
To avoid antitrust hurdles due to overlapping operations in Europe, KONE would likely need to team up with a partner to pursue the deal, according to the sources. TK Elevator is currently the world’s fourth-largest elevator manufacturer, holding a 13% market share according to Jefferies Financial Group Inc. The market is led by Otis Worldwide Corp. (U.S.), followed by KONE and Schindler Holding AG (Switzerland).
“A bid for TK Elevator by KONE could reshape the global elevator market by removing a recovering rival and helping KONE close the margin gap with Otis,” Bloomberg Intelligence senior analyst Omid Vaziri wrote in a research note. “If structured carefully, the deal could boost growth and margin expansion, though execution risk remains high.”
TK Elevator’s IPO Plans
KONE has held an interest in TK Elevator for years. Recently, the company began looking more seriously at a bid as owners Advent and Cinven prepare to take TK Elevator public via an IPO, according to people familiar with the matter.
Last week, Bloomberg also reported that Advent and Cinven had received pitches from banks for the listing and may soon select a small independent boutique firm as a financial adviser.
“With a TK Elevator IPO approaching, KONE may be positioning for a comeback,” Jefferies analysts wrote in a recent note. “Again, given the size of the asset and potential regulatory hurdles, a consortium approach is highly likely.”
TK Elevator recently inaugurated a new elevator technology center in Germany on September 18, 2025.
Previously, in 2020, KONE partnered with private equity firm CVC Capital Partners Plc to bid for TK Elevator, with a plan for CVC to take over the European operations.
However, they withdrew, and Advent and Cinven ultimately won the auction with a €17.2 billion deal. The investor group subsequently brought in new shareholders, including an arm of Saudi Arabia’s sovereign wealth fund, which agreed to buy a stake earlier in 2025.
Discussions remain at an early stage, and there is no certainty KONE will make a formal offer, according to the sources. Bloomberg sources also indicated that Advent and Cinven are weighing various exit options. Representatives for Advent, Cinven, and TK Elevator declined to comment.
Potential Restructuring of the Global Elevator Industry
“Our view hasn't changed. For years, KONE has believed the elevator industry still has room for consolidation,” a KONE spokesperson said, while declining to comment on specific considerations.
An acquisition of TK Elevator could help KONE expand its presence in the lucrative U.S. maintenance business and achieve scale efficiencies, potentially yielding cost savings equivalent to 1% to 2% of sales, according to Bloomberg Intelligence analyst Vaziri.
However, antitrust scrutiny—particularly in Europe—could force KONE to divest assets or find a partner to get the deal approved, Vaziri noted.
TK Elevator employs over 50,000 people globally and posted revenue of €9.3 billion in the 2023–2024 fiscal year. In recent years, the firm has also executed several bolt-on acquisitions, including the purchase of City Elevator Co. (Canada) from KONE itself in 2021 for an undisclosed amount.
KONE is currently controlled by billionaire Antti Herlin—Finland’s richest person with an estimated net worth of $7 billion, according to the Bloomberg Billionaires Index. Founded in 1910, KONE operates in nearly 70 countries with over 60,000 employees.
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