Toshiba considers divesting its elevator segment, Kone shows interest

Recently, Bloomberg cited close sources stating that Japan's Toshiba Corporation may soon make a decision regarding the divestment of part or all of its approximately 80% stake in Toshiba Elevator & Building Systems Corp. (TELC).

The sources also indicated that the Japanese conglomerate could initially sell a small portion of its shares in the elevator business before gradually reducing its ownership by larger amounts.

In this context, Finnish elevator manufacturer Kone, which currently holds nearly 20% of the shares in Toshiba Elevator, has engaged consultants to assess the possibility of increasing its ownership stake and has conducted preliminary discussions with Toshiba to express its interest.

However, the discussions are still in the early stages, and there is no guarantee that a deal will be reached. Besides Kone, other investors in the market may also show interest in this stake.

According to analysts, Kone's interest in Toshiba Elevator reflects its strategy of expanding scale and driving consolidation. However, if aiming for a controlling stake, the process is likely to proceed step-by-step due to sensitivities related to domestic ownership issues in Japan.

Japan is currently assessed as a market with a high density of installed elevators and a large number of aging units in operation, creating significant modernization demand within a service-oriented market—a factor that could support long-term profit margins. Additionally, Kone is considered to have sufficient financial capacity to undertake large-scale deals.

Currently, representatives from both Kone and Toshiba have declined to comment. A spokesperson for Japan Industrial Partners—the investment fund controlling Toshiba—also did not provide a response.

Kone, founded in 1910, currently has over 60,000 employees and achieved revenue of 11.2 billion euros in 2025, with operations in nearly 70 countries. The cooperative relationship between Kone and Toshiba Elevator began in 1998, followed by a share purchase agreement in 2001, which has been maintained to this day.

Toshiba Elevator's products are present in many iconic buildings such as Tokyo Skytree, Taipei 101, and the Shanghai World Financial Center.

Previously, Kone had also considered the possibility of making an offer to acquire TK Elevator—the elevator unit spun off from Thyssenkrupp AG, which is currently pursuing an initial public offering (IPO) plan in Frankfurt, Germany.