Kone to buy rival TK Elevator in 34.4 billion dollar deal
Finnish firm Kone will acquire German rival TK Elevator for 34.4 billion dollars. The deal aims to create the world's largest elevator manufacturer.
KONE OYJ-B will acquire TK-HOLD AD for 29.4 billion euros ($34.4 billion) in a cash and stock transaction. The deal marks one of Europe's biggest takeovers this year and the biggest corporate acquisition in history for Finland. The merger creates the world's largest elevator manufacturer, aiming for 700 million euros in annual cost savings.
### Financing the Finnish Record Deal Kone will pay 5 billion euros in cash and issue 270 million new shares worth 15.2 billion euros. This equity portion represents 33.8% of issued shares and 18.3% of total votes. Kone also plans to refinance 9.2 billion euros of Germany based TK Elevator's interest-bearing net debt.
