Analysis-Kone's new TK Elevator deal comes amid climate change on European champions

Kone has launched a new bid to combine with Germany’s TK Elevator, a deal that would create the world’s largest lift and escalator maker and reshape the European competitive landscape from four to three players. Reuters says an EU revamp of merger rules that allows firms to argue benefits like sustainability could improve the chances of approval, but lengthy, market-by-market antitrust reviews and a likely phase-2 probe mean divestments are probable. The combined group would have roughly €20 billion in annual sales, near €49 billion market value, and about €700m in annual synergies; completion is targeted earliest in Q2 2027. Analysts expect U.S., U.K. and EU scrutiny and potential sales of European assets, tempering deal certainty. The move signals pressure for European industrial consolidation to create global champions, with implications for rivals Schindler and Otis and for regulatory precedent on continental tie-ups.