Schindler plans to oppose Kone and TK Elevator merger
Schindler will challenge a potential merger between rivals Kone and TK Elevator. CEO Paolo Compagna says the deal faces scrutiny from antitrust regulators.
The head of Switzerland lift manufacturer Schindler Holding AG has announced the company's intention to challenge any potential merger between competitors KONE OYJ-B and TK Elevator (TKE). CEO Paolo Compagna stated that the firm would bring the matter before antitrust authorities globally to ensure fair competition within the industry.
Reports emerged last week indicating that Finland-based Kone is in discussions to acquire TKE, a move that would consolidate the third- and fourth-largest manufacturers in the sector. Such a transaction would create the world's largest elevator company, surpassing current market leaders Otis and Schindler.
Compagna described the potential consolidation as a development that would significantly disrupt the industry due to the complexity of merging overlapping production sites, teams, and customer bases.
Im sure that we would not be the only one going and making sure that this antitrust will be checked in every possible country.
This is not the first time a merger between the two rivals has been considered. In 2019, the Finnish group launched a bid in a consortium with CVC CAPITAL PARTNERS PLC. However, that attempt was ultimately unsuccessful, as TKE was acquired by Advent International and Cinven for approximately 17.2 billion euros ($19.9 billion).
Current estimates suggest a new deal could be valued at up to 25 billion euros. Compagna noted that the current economic environment is even more challenging than it was several years ago, predicting that any merger process would likely span multiple years and necessitate significant divestitures. Should the merger proceed and lead to the sale of specific business units, Schindler has expressed interest in evaluating those assets as part of its ongoing bolt-on acquisition strategy.
