A major Finnish elevator manufacturer is reportedly pursuing a massive acquisition deal worth nearly $29 billion, according to a Bloomberg News report released Monday.
Kone Oyj has entered negotiations to purchase competitor TK Elevator, which had been making preparations for a public stock offering, sources familiar with the discussions told Bloomberg.
The potential transaction carries a price tag of up to 25 billion euros, equivalent to $28.74 billion when including debt obligations, according to the report.
Bloomberg’s sources indicate that Kone hopes to finalize an agreement within the next few weeks. Meanwhile, TK Elevator’s ownership group continues advancing their public listing preparations while simultaneously engaging in sale discussions.
The elevator company’s current owners, private equity firms Advent International and Cinven, had been developing plans for an initial public offering. However, recent instability in stock markets has made a direct sale appear more attractive, the Bloomberg report noted.
When Reuters reached out for comment, representatives from Cinven, Advent, Kone, and TK Elevator all declined to provide statements.
Last year, Reuters reported that TK Elevator’s ownership was considering the United States as a potential location for their IPO. Industry sources at that time suggested the company would likely receive a valuation exceeding 20 billion euros.
