Kone Reportedly Plans up to €5 Billion Asset Sale from TKE's European Operations

Finnish elevator and escalator giant Kone Oyj is reportedly planning to sell between €4 billion and €5 billion of assets tied to the European operations of rival TKE, according to a Financial Times report on October 26, 2026. The potential divestiture is a significant development in a long-running effort to combine the two major industry players.

Details of the Proposed Sale

The report, which aligns with earlier media coverage including a Bloomberg story from October 5, 2026, outlines a substantial asset sale. This move is widely seen as a necessary step to address potential antitrust concerns from regulators that would arise from a merger between two of the largest firms in the elevator and escalator market.

Analysts at Citi had previously modeled scenarios for such a divestiture. Their base case involved a €3 billion sale, while an alternative scenario, which the latest report mirrors, considered a sale of all TKE European operations for approximately €5 billion.

Financial Implications and Market Outlook

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Despite the large scale of the potential divestiture, analysts suggest the proposed combination of Kone and TKE would remain financially compelling. According to a note from Citi, the deal would still be attractive even under the larger €5 billion sale scenario.

The bank's analysis highlights several key financial metrics that support this view:

• The merger could generate an estimated 10% earnings per share (EPS) accretion for Kone.
• An implied discounted cash flow (DCF) valuation sensitivity for the combined entity is around €65 per share.

Citi stated that it does not believe the latest report alters the perceived likelihood of the Kone/TKE deal ultimately being completed. The bank reiterated its view that Kone shares offer a positive risk-reward profile over a 12-month horizon.