Shareholders of Finnish elevator manufacturer Kone have approved the company’s proposed $34bn acquisition of German rival TK Elevator, which is backed by private equity firms Advent International, Cinven, according to a report by Reuters.
The decision clears a key milestone for a deal set to create the world’s largest lift and escalator group in a deal that ranks among the largest European M&A deals in recent years and represents the biggest European sell-side private equity exit on record, according to LSEG data.
Approval was secured at an extraordinary general meeting, where a two-thirds majority was required. In practice, support was already largely assured, with shareholders controlling around 74% of voting rights having pre-committed to the transaction.
Following the vote, Kone management said the focus now shifts to regulatory filings and integration planning, with CEO Philippe Delorme noting that work is underway to align operating teams and prepare for post-closing execution.
The combined group is expected to face detailed antitrust scrutiny, reflecting high levels of consolidation in the global elevator market. Kone has previously indicated that closing is likely to take 12 to 18 months, depending on regulatory timelines.
Management also acknowledged that potential remedies, including asset divestments in certain jurisdictions, may be required to secure approval, though it remains confident in completing the transaction.
Under the terms of the cash-and-shares deal, valued at approximately €29.4bn ($34.2bn) including debt at announcement, Kone will pay around €5bn in cash, issue roughly 270 million new class B shares, and assume TK Elevator’s net debt of about €9.2bn.
Upon completion, investors Advent International and Cinven are expected to hold a significant minority position in the enlarged group, alongside board representation, subject to final approvals.
The combined business would surpass US competitor Otis Worldwide in scale, creating a European industry leader with an expanded footprint across Europe and the Americas, though final deal value will remain subject to share price movements over the execution period.
