Finnish liftmaker Kone is trying to limit the scope of asset sales as it seeks EU approval for its €29bn acquisition of German rival TKE, a deal seen as a test of Brussels' support for homegrown champions. Kone agreed to buy TKE in April and plans to sell between €4bn and €5bn of assets to win antitrust clearance. The combined entity would have about €21bn in annual sales, pairing Kone's strength in Asia with TKE's in the US.
Kone is asking bidders to submit initial offers for a smaller range of European assets excluding TKE's operations in Spain and Portugal, while also soliciting bids for wider operations including Iberia. This approach keeps options open depending on the EU's decision. The Spanish market is dominated by local player Orona, which competes alongside Kone, TKE and others. No final decision has been made, with outcomes dependent on talks with Brussels.
Potential bidders include CVC, PAI, EQT, Clayton Dubilier & Rice, and Mitsubishi Electric. Some suitors may team up. Kone reiterated its goal of achieving €700mn in annual savings and remains confident of securing approvals while preserving the deal's strategic rationale.
Source: Financial Times Companies · Summarized by HeadlinesBriefing