Finland's Kone prepares sale of TK Elevator's European business to tackle antitrust concerns, sources say

By Reuters News

By Alexander Hübner and Christoph Steitz

MUNICH/FRANKFURT, Oct 1 (Reuters) - Kone is planning to launch the sale of most of TK Elevator's European business in a bid to tackle antitrust concerns over the Finnish firm's planned €29.4 billion ($33.3 billion) purchase of its German rival, two people familiar with the matter said.

A sales process for TK Elevator's (TKE) European business - which comprises elevators, escalators and related services - is expected to be launched in the fall, the people said, with one of the sources saying it could start in November.

Kone KNEBV.HE in April agreed to buy TKE from an investor group led by Advent International and Cinven CINV.UL in a deal that would create the world's largest lift maker.

"Since announcing the transaction, KONE and TKE have been working closely and constructively with regulators," Kone said in a statement. "We have always been clear that remedy divestments may be necessary in some geographies to secure regulatory clearance."

Advent, Cinven and TKE declined to comment.


Elevator Pitch: Kone-TKE Merger https://www.reuters.com/graphics/KONE-TKE/dwpkyyekxpm/chart_eikon.jpg

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